This thesis presents a quite extensive literature review on literature concerning entrepreneurship, allocation of talent and rent-seeking. There is also a presentation of two models, one model concerning the allocation of talent and rent seeking. The second, demonstrates how rent-seeking affects investments in an economy.
In the empirical part of the thesis there is a re-estimation of the results found in Murphy, Shleifer and Vishny, The Allocation of Talent: Implications for Growth (1991). The result found in this study is only partially recreated here; most of the re-estimations fail to show significance at conventional levels.