RENTS FROM IN-KIND SUBSIDY - CHARITY IN THE PUBLIC-SECTOR

Public choice analysis usually focuses attention on the behaviour of s elf-interested individuals but this paper considers rent seeking when some taxpayers are motivated by altruism. Redistribution policies init iated by self-interested rent seekers require taxpayer approval. Even if taxpayers are fully informed, their resistance to inefficient schem es is reduced when public sector schemes are the only means available to pursue altruistic goals. Altruism serves to broaden the scope withi n which rent seekers may operate. A discussion of international ''tied '' aid illustrates the impact which rent seeking can exert on public s ector ''charity.''