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Growth and Insecure Private Property of Capital

Author

Listed:
  • Bertrand Crettez

    (Université Panthéon-Assas, Paris II)

  • Naila Hayek

    (Université Panthéon-Assas, Paris II)

  • Lisa Morhaim

    (Université Panthéon-Assas, Paris II)

Abstract

This paper revisits Strulik’s model of growth with insecure property rights. In this model, different social groups devote some effort to control a share of the capital stock. We show that a slight variation in the modeling of strategic interactions results in the coexistence of savings and efforts to control a share of the capital stock. We also study the effects of a change in the number of social groups on growth. We also show that an increase in social fractionalization may lead to less effort devoted to control capital and to a higher growth rate.

Suggested Citation

  • Bertrand Crettez & Naila Hayek & Lisa Morhaim, 2019. "Growth and Insecure Private Property of Capital," Dynamic Games and Applications, Springer, vol. 9(4), pages 1042-1060, December.
    • Handle: RePEc:spr:dyngam:v:9:y:2019:i:4:d:10.1007_s13235-018-00294-9
    DOI: 10.1007/s13235-018-00294-9
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    References listed on IDEAS

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
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    More about this item

    Keywords

    Dynamic games; Insecure private property of capital; Growth;
    All these keywords.

    JEL classification:

    • C - Mathematical and Quantitative Methods
    • D - Microeconomics
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • E - Macroeconomics and Monetary Economics
    • O - Economic Development, Innovation, Technological Change, and Growth
    • O - Economic Development, Innovation, Technological Change, and Growth

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