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Study On Rent-Setting And Rent-seeking From General Equilibrium Analysis's Perspective

Posted on:2010-05-17Degree:DoctorType:Dissertation
Country:ChinaCandidate:X G LiFull Text:PDF
GTID:1119360275497865Subject:Western economics
Abstract/Summary:PDF Full Text Request
From Adam Smith, the economic mainstream economists always believed that, it is the best mechanism to increases the social efficiency for free competition market based on personal interests. From the aspects of social efficiency, the behavior of humanity pursuing its own economic interest can be divide into two kinds: One kind is the normal economic production activity, including the daily production activity, scientific researches and the technology development operations in order to improve the production efficiency, as well as the transaction activity which carries on under the normal market condition and so on. These activities can create the public wealth, promote the social welfare; Another kind is beside the production activity, and aim at influencing others behaviors and profits through various systems. These activities may not create the new public wealth, from the aspects of main body, its goal is maximizing the personal interest, but this kind of behavior and its result possibly causes the redistribution of public wealth, sometimes even can cause the waste of social economy resources. The modern theory economical mass more and more note that in the realistic society, as a result of some economic systems'restriction and the guidance, the behavior which the individual draw on the advantages and avoid disadvantages may cause the unproductive consumption of economical resources. The economists have the bounden responsibilities that they should research on this kind of behavior, analyze the research, explain phenomenon reasonable, and make the credible judgment to these behavior consequence.In the present market economy system, the scope of government intervening the economic activity becomes more and more large, Especially since September 15, 2008, the subprime crises or called financial tsunami affected the global economy growth until now. Various countries'government have intervened the economic activities more often than before. US, England, France, Russia, Japan, South Korea, Australia and China and so on, already successively formulated the measurements that how should we avoid the risks and avoid the further worsened. And the government intervene the economic activities mainly focus on controlling and the inducting to the micro economic activity. This is also the substitution of modern market mechanism. Daniel F. Spulber (1999) believed that, the government intervention is the general rule or the special behavior made by the administrative organization in order to intervene the market allocation directly or change the supply and demand decision-making between enterprise and the consumer indirectly. The famous Japanese controlling economist Uekusa Masu (1992) called the government regulation as"the public rules and regulations", and defined it as: Social public organization carries on the regulations to the behaviors of enterprises based on some rules. The government regulation relates with the market failure, and it is an administrative mechanism and replaces the competition policy in order to overcome the market failure. When the market mechanism cannot realize the resources effective allocation, which is market failure, the government rectifies and improves the intrinsic question of market mechanism through the controlling, and intervene resources allocation.In the intervention of microeconomic subject activity, the original goal of the governments is remedy the negative results of market failure. Thus it can enhance the efficiency of resources allocation as far as ensure that the public interest is not violated. But because the government department can use the legal authority, through the permission and approval methods and so on to restrict the enterprise's entry and leave, the price, service quantity and the quality, the investment, financial accounting and the related behavior. In addition, the government has the power to make up regulation and safeguard the worker and consumer's safety, the health, as well as environment protection, in order to prevent the disaster, accompanied by various activities in the process of productions. In the government the employee or called the government officers or clerks, and under the assumption of its economic human's, must establish the rent, pull out rent, and encourages enterprise or the consumer individual to seek rent, then possibly appears the phenomenon of government failure. But the historical fact already proved and will continue to prove, regardless of the past, present or the future, the economic activities without governments is difficult to image. The government may consume the massive controlling cost or the huge rent disbursement, but once we do not have the government, the cost could be larger due to the disorder economic activity, and the negative influence will also be more greatly and longer. Therefore, under this background, the research on government establishing the rent appears extremely important and has the practical significance.These article starts with the government establish the rent. In turn I analyze the model of government's supply and demand, the supply analysis of establishing rent, the demand analysis of establishing rent, the general balance analysis of establishing rent and bring forward a solution for establishing rents. Concrete content including as follows: The introduction introduced the question statement and the structure of this article, the innovation and the insufficiency; the first chapter is related definition, the theory and the assumption. I introduced the main related definition, the theory and the assumption in separately. The second chapter is the supply and demand analysis relevant to the government establishing the rent, and explains in detail that the action of setting up rent cause the supplying of rent. Third chapter mainly analyzes the principal-agent relationship in aspect of rent supplying. I use the relationship between the central authorities and the local authority to illustrate that the behavior of establishing rent comes from the game actions of local government or the control organization encourage enterprise to compete. The fourth chapter use the similar method-- the demand analysis of the government establishing the rent. I give the reason including symmetry of the rent seekers and the analysis of dissipates degree for the rent, the characteristic of the rent seeker and the analysis of the incomplete dissipates rent and some other factor analysis to influence the rent seekers. In the front of fifth chapter is the partial equilibrium analysis. This chapter analyzes the general balanced and considers the invariable factor; analyze the general balanced of government establishing the rent from the aspects of fixed enterprise number, the change of enterprise number to and the union situation of enterprise number. Four and five will give the explanation of the efficiency and the welfare loses. The chapter six tell us a solution to how governs the government establish the rent, calm explanation! Then based on the front generalized analysis, I consider that auction design of the rent may be an effective method to solve the government's rent distribution.The innovation of this article mainly displays in following aspects:First is the innovation method of analysis questions. This article analyzed the rent which the government establishes combine with the economic theory and the government regulation economic theory, and has applied supply and demand model analysis and general balanced analysis in microeconomics theory. I proposed the auction design theory possibly became the solution of standardizing that government establishes the rent. This article not only uses the logic reasoning analysis method, but also applied mathematics to prove the relevant problems, enhanced the accuracy of related proposition.Second is innovation in viewpoint and content. At present, the domestic and foreign scholars compose related rent seeking article most only pay attention to the seeking behavior in enterprise or the consumer, and most articles also regard the government as the rent seeker for analyzing. Moreover, some controlling economic article, also concentrates their discussion in the government regulation, the relaxation control and controls again, also most concentrates the welfare effect in the government controlling. This article has given the condition that the government is the main body of establishing the rent, and will play the leading status between the relationship establishing rents (pulls out rents) and seeking rent. Therefore, the analysis of the contents for government main body constituted this article foundation.This article deficiency lies in:For the question in this article I only prove and deduce from theoretical aspects, has not been able to gives the correlation examination and the evidence from the actual statistical experience and the data. This will wait for my future further research.
Keywords/Search Tags:government's rent-setting, enterprise's rent- seeking, supply and demand analysis of the rent, general equilibrium analysis
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