Government Action Under The Rent-seeking Theory Perspective

Rent-seeking theory, produced during 60's and 70's in 20th century , is one of the most active research areas in the western economic , also is an important branch of public choice theory. She is formed and produced during the process which economists discussed the society loss that produced by monopoly, custom, and government regulation.Rent-seeking theory is application the neoclassic economic values and theory in unproductiveness field .The fundamental mode of rent-seeking is obtaining the monopoly or the privilege through soliciting officials, in the same time the government initiatively establish monopoly and privilege. The discussion of the non-market and the government failures with rent-seeking theory is useful to restrain the corrupt behavior.The 1990s rent-seeking theory is widely applied in our country reform. During the transformation from the traditional planned economy system to the modernization market economy system, our country has experienced the stage which coexists the dual systems. Because the urging of interest, as well as the lacking of effective systems, massively seeking behavior will certainly be produced in the searching for maximum interest process. Rent-seeking in our country current is different from that in the developed country, such as the background and manifestation is all widely divergent, therefore using the west rent-seeking theory to explain our activities is inappropriate. Applying theory to reality, this article analyzes officials' seeking with the corrupt behavior in our economical reform from the view of rent-seeking theory above the research results which oneself has.This article is composed by four parts, it's main contents as follows:The first part is the outline of rent-seeking. Introducing the definition , analyzing the levels as well as producing of rent-seeking, at the same time explaining the social cost and the welfare loss which rent-seeking has caused.The second part is the analysis of government rent-seeking. Classifying political...