Budgeting and rent-seeking in government budgetary allocations

Abstract

Consideration of the governments’ budgetary activity in the light of rent-seeking theory has been very limited and rent-seeking waste generated within the governments’ budget remained empty of empirical content. Katz and Rosenberg (1989) were the first authors to propose and apply a measure of rent-seeking, based on changes in government budgetary allocations. This thesis, alter analyzing the budget structure and the budgeting system in general and then in the Turkish framework, suggests a model to measure rent-seeking in government budgetary allocations. The measure is based on the supposition that every deviation in the expenditure part of the budget occurs as a result of rent-seeking activity and is indicative of a waste of resources.