This paper examines the relationship between rent seeking and economic performance when governmen... more This paper examines the relationship between rent seeking and economic performance when governments cannot enforce property rights. With imperfect credit markets and a fixed cost of rent seeking, only wealthy agents choose to engage in it, since it enables them to protect ...
Authorized for distribution by Hugh Bredenkamp This Working Paper should not be reported as repre... more Authorized for distribution by Hugh Bredenkamp This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent
We provide a new explanation for sub-Saharan Africa’s slow demographic and economic change. In a ... more We provide a new explanation for sub-Saharan Africa’s slow demographic and economic change. In a model where children die from infectious disease, childhood health affects human capital and noninfectious-disease related adult mortality. When child mortality falls from lower prevalence, as in western Europe, labor productivity improves, fertility falls and the economy prospers. When it falls mainly from better cures, as in sub-Saharan Africa, survivors are less healthy and there is little economic payoff. The model quantitatively explains sub-Saharan Africa’s experience. More generally it shows that life expectancy at birth is a poor indicator of population health unless morbidity falls with mortality
2005 This Working Paper should not be reported as representing the views of the IMF. The views ex... more 2005 This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper examines the relationship between rent seeking and economic performance when governments cannot enforce property rights. With imperfect credit markets and a fixed cost of rent seeking, only wealthy agents choose to engage in it, since it enables them to protect their wealth from expropriation. Hence, the level of rent seeking and economic performance are determined by the initial distribution of income and wealth. When individuals also differ in their productivity, not all wealthy agents become rent seekers and the social costs of rent seeking are typically lower. In both cases, multiple equilibria with different levels of rent seeking a...
This paper examines the relationship between rent seeking and economic performance when governmen... more This paper examines the relationship between rent seeking and economic performance when governments cannot enforce property rights. With imperfect credit markets and a fixed cost of rent seeking, only wealthy agents choose to engage in it, since it enables them to protect ...
Authorized for distribution by Hugh Bredenkamp This Working Paper should not be reported as repre... more Authorized for distribution by Hugh Bredenkamp This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent
We provide a new explanation for sub-Saharan Africa’s slow demographic and economic change. In a ... more We provide a new explanation for sub-Saharan Africa’s slow demographic and economic change. In a model where children die from infectious disease, childhood health affects human capital and noninfectious-disease related adult mortality. When child mortality falls from lower prevalence, as in western Europe, labor productivity improves, fertility falls and the economy prospers. When it falls mainly from better cures, as in sub-Saharan Africa, survivors are less healthy and there is little economic payoff. The model quantitatively explains sub-Saharan Africa’s experience. More generally it shows that life expectancy at birth is a poor indicator of population health unless morbidity falls with mortality
2005 This Working Paper should not be reported as representing the views of the IMF. The views ex... more 2005 This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper examines the relationship between rent seeking and economic performance when governments cannot enforce property rights. With imperfect credit markets and a fixed cost of rent seeking, only wealthy agents choose to engage in it, since it enables them to protect their wealth from expropriation. Hence, the level of rent seeking and economic performance are determined by the initial distribution of income and wealth. When individuals also differ in their productivity, not all wealthy agents become rent seekers and the social costs of rent seeking are typically lower. In both cases, multiple equilibria with different levels of rent seeking a...
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Papers by Shankha Chakraborty