Go West Young Man: Self-selection and Endogenous Property Rights
AbstractIf, as Hume argues, property is a self-referring custom of a group of people, then property rights depend on how that group forms and orders itself. In this paper we investigate how people construct a convention for property in an experiment in which groups of self-selected individuals can migrate between three geographically separate regions. We find that the absence of property rights clearly decreases wealth in our environment and that interest in establishing property rights is a key determinant of the decision to migrate to a new region. Theft is nearly eliminated among migrants, resulting in strong growth, and non-migrants remain in poverty. Thus, self-selection, through the decision to migrate, to form more cooperative groups is essential for establishing property rights.
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Bibliographic InfoPaper provided by Chapman University, Economic Science Institute in its series Working Papers with number 09-02.
Length: 35 pages
Date of creation: 2009
Date of revision:
experimental economics; property rights; migration and exit;
Find related papers by JEL classification:
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
- F10 - International Economics - - Trade - - - General
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