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The Analysis of the Rent-seeking Behavior in the Public Servant Market

Author: ZhangZhen
Tutor: WangYuXia
School: Dongbei University of Finance
Course: Western Economics
Keywords: the public servant market behavior of rent-seeking the negative externalities of rent-seeking institutional rents
CLC: F091.349
Type: Master's thesis
Year: 2011
Downloads: 88
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Abstract

The seeking theory has been a widely researched topic since it entered into China. Since then, the corruption had been named on an academic scope. It is a big step that from translating and introducing the writings on the seeking theory in 1980s to analyzing the realistic issue of China used the seeking theory itself. The issue includes the government action, public power, reform of foreign trade system, the creation and reform of finance market, etc. What’s the same is the rent-seeking is a bad thing that made the output decrease and the resource is wasting. However, it is creative when it comes to the positive externalities in the rent-seeking. Since China entered the 21st century, the institutional innovation has been the main issue of China’s policy reform. Therefore, the rent-seeking to seek the rearrangement of the institution has been a new way of the rent-seeking theory.Meanwhile, the research on the system of public servant is also developing rapidly. Since the Civil service examination system had been setup, it actually planted hidden danger for the rent-seeking. With the development of society, the potential problem is becoming more and more prominent. Look at the phenomenon of Civil servants frenzy. Then the reform of it is going to carry out. However, I think this paper may be the first one to combine the two hot issues together, rather than the paper by Lu Xianxiang in 2009. The latter just indicated the rent-seeking exists in the government and the high payment is the main reason of "civil servants frenzy".This paper aims at starting from defining the public servant market, then minutely list the variant rent-seeking behavior in the public servant market according to the rigorous logic and the facts, and point out that the mechanics is the increase of the demand rather than the artificially decrease the supply which is believed by the traditional rent-seeking theory. Because the public servant market is just like a corporation which is mature in the recruitment, even when it comes to the artificial intervention, it is a smaller effect than other traditional monopolized industry. And then analyze the reason and the effect of rent-seeking, which I try to proof by demonstration. In the end, the paper try to figure out some reform methods from the angle of Institution rent-seeking. And it also point out not all the rent-seeking is harmful to the society according to the current reform measure in the public servant market and try to provide the theoretical basis for its reform in order to construct a fair public servant market that better serve the civilian.

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