Search Results

You are looking at 1 - 1 of 1 items for

  • Author or Editor: J. Smirnova x
  • Refine by Access: All Content x
Clear All Modify Search

The lack of a strong local entrepreneurial activity and the presence of a flourishing rent-seeking sector are two of the major issues raised when debating on developing and transition countries. We claim that the allocation of entrepreneurs between productive and rent-seeking sectors is mainly determined by the reward structure that prevails in both sectors. The introduction of a rent-seeking spillover factor permits to demonstrate that the entrepreneurs involved in production activities may find it convenient to switch to unproductive ones, when the production method operates under decreasing returns.

Restricted access