PDA

View Full Version : Can someone explain "Rents"



kappakai
11-14-2008, 12:51 PM
Its something I could never get my head around. Whether it be economic or political rents. Actually, I'm looking more for an explanation of political rents, as in rent-seeking behavior by, for example, interest groups.

Reps for help.

EDC
11-14-2008, 01:39 PM
Its something I could never get my head around. Whether it be economic or political rents. Actually, I'm looking more for an explanation of political rents, as in rent-seeking behavior by, for example, interest groups.

Reps for help.

political rents are when a specific segment of society seeks special benefits from the government. for example if tomorrow tariffs are raised on japanese cars because detroit automakers lobbied the government that would be a political rent.

basically you are selling political support. it evens happens between countries such as jordan and the us.

kappakai
11-14-2008, 01:41 PM
political rents are when a specific segment of society seeks special benefits from the government. for example if tomorrow tariffs are raised on japanese cars because detroit automakers lobbied the government that would be a political rent.

basically you are selling political support. it evens happens between countries such as jordan and the us.

thanks, you're on spread.

so i read somewhere, i think wiki, that economic rents are income that is not derived from production activities, so for example, subsidies granted through lobbying.

EDC
11-14-2008, 01:42 PM
thanks, you're on spread.

so i read somewhere, i think wiki, that economic rents are income that is not derived from production activities, so for example, subsidies granted through lobbying.

exactly. it is income you haven't "earned" but gained through a political process.

Dreamscapes
11-14-2008, 01:43 PM
thanks, you're on spread.

so i read somewhere, i think wiki, that economic rents are income that is not derived from production activities, so for example, subsidies granted through lobbying.

I got him for ya. I usually neg people, so you've spared one person today.