Why is rent-seeking highly relevant for recent economic theory? In this paper, the author argues that recent criticism of rent seeking theory is not new and relevant. First, he explains the basis of rent seeking and the main contributions to this theory. Then he explains the criticism of this approach, which attacks the static grounds of this theory stemming out of the perfect competition equilibrium model and the normative concretizing of rent-seeking actions. He argues that rent-seeking theory had already abandoned the static perfect competition model in the eighties and that arguments using dynamic rent-seeking theory remain normative until they explain the institutional causes of economic development, which has been the centre of the economic profession for centuries.
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