This paper sheds light on the relationship between oil rent and the allocation of talent, toward rent-seeking versus more productive activities, conditional on the quality of institutions.
The State government has decided to sell to its sitting tenants, due to high maintenance costs and loopholes in the rent setting and allocation processes.
The space is rented anew annually, maximizing allocation.
But we argue that a given economic structure has a given structure of occupational rents that determines the allocation of talent.
An auction is preferred to grandfathering (giving companies permits based on historical output or emissions), because it allows reduced tax distortions, provides more flexibility in distribution of costs, provides greater incentives for innovation, and reduces the need for politically contentious arguments over the allocation of rents.
The analysis conducted was based on the model of dynamic allocation of rents originally demonstrated in Kaplinsky (2004), which was supplemented by elements of Foresight analysis to develop sectoral and horizontal policy recommendations to increase the effectiveness of participation of Russian companies in the corresponding GVCs.
Concerns about who is eligible for social housing could erode public support for a new generation of social rented homes, but allocations policy is ultimately a political decision.
The Chartered Institute of Housing, the professional body for people working in housing, said that housing reforms could turn social housing into "a revolving door for poverty" unless detailed work is carried out to explore the key issues of waiting lists, allocations, rents and tenancies.
A grant allocation from the DHP pot is made if a household either cannot afford to make payment towards their housing costs or has slipped into rent arrears because their finances are so tight they cannot absorb the shock of change.
Allowing rents to increase each year by only a benchmark of average market rents will prevent the efficient allocation of housing, creating dangerous distortions the higher the level at which the averages are calculated..
