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Poverty, Voracity, and Growth

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  • Strulik, Holger

Abstract

This article investigates economic performance when enforceable property rights are missing and basic needs matter for consumption. It suggests a new view of the so-called voracity effect according to which windfall gains in productivity induce behavior that leads to lower economic growth. Taking into account that the rate of intertemporal substitution in consumption depends on the level of consumption, it is shown that "voracious behavior" is situation-specific. It occurs when an economy is in decline and suffciently close to stagnation.

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File URL: http://diskussionspapiere.wiwi.uni-hannover.de/pdf_bib/dp-473.pdf
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Bibliographic Info

Paper provided by Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät in its series Hannover Economic Papers (HEP) with number dp-473.

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Length: 21 pages
Date of creation: May 2011
Date of revision:
Handle: RePEc:han:dpaper:dp-473

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Keywords: economic growth; property rights; common pool resources; voracity; fractionalization.;

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References

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  31. repec:fth:harver:1435 is not listed on IDEAS
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Citations

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Cited by:
  1. Yohei Tenryu, 2013. "Interest in Private Assets and the Voracity Effect," KIER Working Papers 850, Kyoto University, Institute of Economic Research.
  2. Strulik, Holger, 2012. "The voracity effect revisited," Mathematical Social Sciences, Elsevier, vol. 64(3), pages 272-276.
  3. Tenryu, Yohei, 2013. "The Role of the Private Sector under Insecure Property Rights," MPRA Paper 50727, University Library of Munich, Germany.

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