Series: IMF Working Papers
Author(s): Paul Wade , and Era Dabla-Norris
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 February 2001
Keywords: lotteries, probability, expropriation, equation, credit markets, equations, Personal Income, Wealth, and Their Distributions, Models of Political Processes: Rent-seeking
This paper studies the relationship between wealth inequality and occupational choice between rent-seeking and production. With imperfect credit markets and a fixed cost to rent-seeking, only wealthy agents choose...