Abstract
Economists from (1776) to (1981) agree that poor protection of property rights is bad for growth. But why is this problem so severe? Why do Peru (Hernando De Soto, 1989) and Equatorial Guinea (Robert Klitgaard, 1990) fail to grow at all when public and private rent-seeking make property insecure? In this paper, we explore two reasons why rent-seeking, meaning any redistributive activity that takes up resources, is so costly to growth.
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© 2008 Springer-Verlag Berlin Heidelberg
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Murphy, K.M., Shleifer, A., Vishny, R.W. (2008). Why Is Rent-Seeking So Costly to Growth?. In: Congleton, R.D., Konrad, K.A., Hillman, A.L. (eds) 40 Years of Research on Rent Seeking 2. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-79247-5_11
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DOI: https://doi.org/10.1007/978-3-540-79247-5_11
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-79185-0
Online ISBN: 978-3-540-79247-5