Differentials in Property Rights in a two sector-economy
AbstractThis paper presents a two-sector economy. In a contested sector two agents struggle to appropriate the maximum possible fraction of a contestable output. In an uncontested sector uncontested sector, they hold secure property rights over the production of some goods. Agents split their resource endowment between ‘butter’, ‘guns’ and ‘ice-cream’. The latter denote productive activities secure from appropriation. It is shown how improvements in productivity can countervail destructive impact of continuous conflicts. Eventually, the basic model is extended to consider a government and a rival group. A redistributive government can boost production in the uncontested sector, but at a higher level of ‘guns’.
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Bibliographic InfoPaper provided by Network of European Peace Scientists in its series NEPS Working Papers with number 2/2012.
Length: 24 pages
Date of creation: 05 Sep 2012
Date of revision:
property rights; conflict; productive and unproductive Activities; Butter; Guns and Ice-cream; appropriation; entrepreneurship; redistribution; kleptocracy;
Other versions of this item:
- Raul Caruso, 2012. "Differentials in property Rights in a two-sector economy," Revue d'économie politique, Dalloz, vol. 122(2), pages 257-278.
- D20 - Microeconomics - - Production and Organizations - - - General
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
- H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-22 (All new papers)
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