Housing Market and Agglomeration of Rent-Seeking Activities: Implications for Regional Development

Konferenzbeitrag

Rent-seeking is defined as exercising privileges or expending resources in order to obtain uncompensated gain by redistributing the wealth of others without reciprocating any benefits back to society through wealth creation. This paper pioneers in analyzing the agglomeration of rent-seeking activities in geography and the corresponding impact on regional economies. First of all, we construct a theoretical model based on the standard settings in the literature of economic geography with two types of mobile workers. Each agent maximizes his/her utility, whereas the distribution of agents' type corresponds to a map of productive and rent-seeking activities. Next, conditions for the agglomeration of rent-seeking activities are characterized, which constitute partially segregated equilibria. Finally, based on a panel data analysis for the conterminous 48 states in the U.S., we examine by how much the regional per capita real GDP drops when there is an extra 1 percent increase in the rent-seeking activities in the housing market.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: 54th Congress of the European Regional Science Association: "Regional development & globalisation: Best practices", 26-29 August 2014, St. Petersburg, Russia

Classification and Topics

• Classification: Wirtschaft ; General Equilibrium and Disequilibrium: General ; Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior ; Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Peng, Shin-Kun
• Event: Veröffentlichung
• (who): European Regional Science Association (ERSA)
• (where): Louvain-la-Neuve
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/124296
• Last update: 10.03.2025, 11:43 AM CET