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Proprietary Policy and Production

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  • Byeongju Jeong

Abstract

I present a model of a proprietary regime with opportunities for direct production (e.g.,plantation cultivation, mining extraction). The premise is that direct production is a superiormethod of appropriation than taxation. The tax and spending policy of the regime distorts the resource allocation in favor of direct production and at a loss of private production; the welfare of the population suffers while the regime benefits. I examine the relevance of the model to the policies of actual proprietary regimes.

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Paper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp287.

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Date of creation: Jan 2006
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Handle: RePEc:cer:papers:wp287

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  1. Habib, Irfan, 1969. "Potentialities of Capitalistic Development in the Economy of Mughal India," The Journal of Economic History, Cambridge University Press, vol. 29(01), pages 32-78, March.
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