Rent-setting
| Initiator | Appelbaum and Katz |
|---|---|
| Introduced | 1987 |
| Synonym | rent-creating[1] |
| Rent-setting | |
|---|---|
Hanyu Pinyin | Shèzū |
Rent-setting[2] (also spelled as rent setting;[3] simplified Chinese: 设租; traditional Chinese: 設租), also known as rent-creating, [4] refers to the act of governments or bureaucrats using their power to intervene in the market, resulting in the formation of new economic rents and creating rent-seeking opportunities for certain market entities.[5] In short, it means that the power itself committed an act in order to take a bribe.[6]
The concept of rent-setting was coined by Appelbaum and Katz in 1987.[7] This theory holds that since the regulator itself may become a rent-seeker, the rent-seeker itself will become a rent-setter and thus endogenously determine the size of the rent.[7]
Rent-setting is part of the chain of the rent-seeking process. [8] It can generally be divided into three types: unintentional rent-setting, passive rent-setting and active rent-setting.[9]
In a 'power-money' transaction, rent-setting is from 'power' to 'money', while rent-seeking is often 'money-power-money increment'. [10] In fact, rent seeking and rent setting are two sides of the same behavior and cannot be separated. [11]
See also
References
- ^ "Revisiting progressive reform". The Economic Observer. 2010-01-29.
- ISBN 978-3-642-55512-1.
- ISBN 978-0-230-59768-6.
- ISBN 978-7-5017-5699-5.
- ISBN 978-7-5161-4572-2.
- ^ Chen Yijin (2016-05-07). "Distinguish between a good hospital and a bad one, then what?". Creaders.net.
- ^ ISBN 978-7-5086-0374-2.
- ISBN 978-1-134-03441-3.
- ISBN 978-7-5066-2991-1.
- ISSN 0577-9154.
- ^ Li Beifang (2016-08-18). "It is capital, not power, that seeks rent". Utopia.