Location Choice and Urban Growth in a Rent-Seeking Society

Abstract

Gordon Tullock suggested that as rent-seeking becomes increasingly important, location choices and urban growth patterns will be affected. Resources should be diverted to cities where government units are most able to grant rents. The implications of this argument are expanded upon using principles of location theory and location-specific growth theory. An empirical test of an urban growth model provides support for Tullock's contentions. By considering rent seeking in the context of location and urban growth models, the implications of the rent-seeking paradigm are extended. Simultaneously, a more complete understanding of relative urban growth rates is gained.