Money for Nothing: Politicians, Rent Extraction, and Political Extortion. Fred S. McChesney.

Money for Nothing: Politicians, Rent Extraction, and Political Extortion. Fred S. McChesney. 428 BOOK REVIEW ing to impose costs – a form of political extortion or blackmail.” (The extravagant language is representative of the tone of the book.) Typically, he argues, such a threat takes the form of threatening to impose price controls, taxes, or other profit-reducing restrictions. The private parties respond to the threat by paying the politician consideration up to the value of the threatened rent extraction, and the threat is withdrawn. The principal problem with this theory is that it seems unlikely that the politi- cians who would make such threats would typically be the same politicians who would receive such payments. When a politician threatens an industry with (say) increased regulation, it seems much more the usual and likely case that the industry responds to the threat with contributions to that politician’s opponents. (Indeed, one of the standard responses to the charge that political contributions are nothing more than bribery is that, rather than paying politicians to change their minds, contrib- utors are paying those politicians who have already signalled that their positions will be desirable ones.) If McChesney has in mind some sort of meta-agreement under which I make liberal proposals to elicit conservative contributions, in http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Money for Nothing: Politicians, Rent Extraction, and Political Extortion. Fred S. McChesney.

Loading next page...
 
/lp/springer_journal/money-for-nothing-politicians-rent-extraction-and-political-extortion-1cdrONgjqc
Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2000 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1007878201781
Publisher site
See Article on Publisher Site

Abstract

428 BOOK REVIEW ing to impose costs – a form of political extortion or blackmail.” (The extravagant language is representative of the tone of the book.) Typically, he argues, such a threat takes the form of threatening to impose price controls, taxes, or other profit-reducing restrictions. The private parties respond to the threat by paying the politician consideration up to the value of the threatened rent extraction, and the threat is withdrawn. The principal problem with this theory is that it seems unlikely that the politi- cians who would make such threats would typically be the same politicians who would receive such payments. When a politician threatens an industry with (say) increased regulation, it seems much more the usual and likely case that the industry responds to the threat with contributions to that politician’s opponents. (Indeed, one of the standard responses to the charge that political contributions are nothing more than bribery is that, rather than paying politicians to change their minds, contrib- utors are paying those politicians who have already signalled that their positions will be desirable ones.) If McChesney has in mind some sort of meta-agreement under which I make liberal proposals to elicit conservative contributions, in

Journal

Review of Industrial OrganizationSpringer Journals

Published: Oct 16, 2004

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve Freelancer

DeepDyve Pro

Price
FREE
$49/month

$360/year
Save searches from
Google Scholar,
PubMed
Create lists to
organize your research
Export lists, citations
Read DeepDyve articles
Abstract access only
Unlimited access to over
18 million full-text articles
Print
20 pages/month
PDF Discount
20% off