Kahana, Nava; Klunover, Doron - Institute for the Study of Labor (IZA) - 2014
taxation. Through the addition of substitution to rent seeking beyond leisure, rent seeking increases the excess burden of … taxation under risk neutrality when leisure is non-inferior. We derive a condition for rent seeking to increase the excess … burden of taxation under risk aversion. Our conclusion is that, when rent seekers can earn taxable income, rent seeking is …