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Abstract

The process of rent seeking refers to the use of political processes to capture payments to a resource beyond the opportunity cost of the resource. I describe an example of rent seeking that coexists with the economic problem of explaining altruism. I use data from real property sales to estimate the value of an economic rent that accrued to an individual as the direct result of a local government public expenditure project on donated land. I argue that we may view the donation of the land as the winning bid in a rent seeking contest and therefore not purely altruistic.

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