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Insecure Property and Technological Backwardness

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  • Francisco M. Gonzalez

Abstract

We consider the incentive to adopt superior technologies when private property is insecure. The welfare costs of insecure property can be substantially greater than those commonly associated with diversion and with the disincentive effect induced by imperfect appropriation of returns. When private property is sufficiently insecure, anticipation of conflict over economic distribution gives rise to technological backwardness, even though (1) superior technologies are readily available at zero cost and (2) the "ex post" diversion of resources might be small. Copyright 2005 Royal Economic Society.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 115 (2005)
Issue (Month): 505 (07)
Pages: 703-721
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Handle: RePEc:ecj:econjl:v:115:y:2005:i:505:p:703-721

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Cited by:
  1. Stergios Skaperdas, 2008. "An economic approach to analyzing civil wars," Economics of Governance, Springer, vol. 9(1), pages 25-44, January.
  2. Matthew J. Baker & Erwin H. Bulte, 2005. "Kings and Vikings: On the Dynamics of Competitive Agglomeration," Departmental Working Papers 11, United States Naval Academy Department of Economics.
  3. Jose-Luis Evia & Roberto Laserna & Stergios Skaperdas, 2008. "Socio-Political Conflict and Economic Performance in Bolivia," CESifo Working Paper Series 2249, CESifo Group Munich.
  4. Rowthorn, Robert & Seabright, Paul, 2010. "Property Rights, Warfare and the Neolithic Transition," IDEI Working Papers 654, Institut d'Économie Industrielle (IDEI), Toulouse.
  5. J. Amegashie, 2011. "Incomplete property rights and overinvestment," Social Choice and Welfare, Springer, vol. 37(1), pages 81-95, June.
  6. Rick van der Ploeg & Dominic Rohner, 2010. "War and Natural Resource Exploitation," OxCarre Working Papers 042, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  7. J. Atsu Amegashie, 2009. "Incomplete Property Rights and Overinvestment," CESifo Working Paper Series 2711, CESifo Group Munich.
  8. Andrew Tiffin, 2006. "Ukraine: The Cost of Weak Institutions," IMF Working Papers 06/167, International Monetary Fund.
  9. Michelle R. Garfinkel & Stergios Skaperdas, 2006. "Economics of Conflict: An Overview," Working Papers 050623, University of California-Irvine, Department of Economics, revised Sep 2006.
  10. repec:idb:wpaper:4548 is not listed on IDEAS
  11. repec:idb:wpaper:4547 is not listed on IDEAS
  12. Douhan, Robin & Henrekson, Magnus, 2007. "The Political Economy of Entrepreneurship: An Introduction," Working Paper Series 688, Research Institute of Industrial Economics.

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