When are stable rights to rents bad

摘要: Stable, enforceable property rights over resources normally furthers economic efficiency. I argue that stable to government created rents and wealth transfers, by contrast, generate inefficiency. Secure receive transfers increases rent-seekers' incentive make political investments creating new transfers. demonstrate the point using a two period rent-seeking game. Contestable reduce probability of establishing transfer program aggregate expenditures. Strengthening recipients' difficulty eliminating program.