P.S. Notes for 4-11-11 - TEST 4 MATERIAL What are most...

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TEST 4 MATERIAL What are most people’s concerns about the economy? - Economic growth/performance - Distribution of the growth Political Economy - Studies the nature of the relationship between the state and the economy. Rationality and Rational choice model - People prefer winning over loosing. o In your economic interest. Kleptocracy - Corruption (Use of public resources for private gain). o Vote buying, patronage, clientelism, bribes… “Rents” and Rent-Seeking - Transfers of money not related to production - Method for buying support (at expense of public good) o A form of corruption. o Bribes… “The Economist” defines rent-seeking: - Cutting yourself a bigger slice of the cake rather than making the cake bigger. Trying to make more money without producing more for customers.” - The money going to bribes could be spent on something useful… Classic examples of rent-seeking behavior - “Protection” of a business or person. -
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This note was uploaded on 06/21/2011 for the course PSC 102 taught by Professor Sharlach during the Spring '11 term at University of Alabama at Birmingham.

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P.S. Notes for 4-11-11 - TEST 4 MATERIAL What are most...

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