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Envy, Institutions And Growth

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  • Michael Mitsopoulos

Abstract

The use of interdependent preferences provides an intuitive link between institutions and growth. Envious agents that care about relative wealth choose to use an available destruction technology to inflict harm on the wealth of other agents when institutions fail to make property rights secure, while they use a production technology to increase their wealth when institutions make it easy and hassle‐free to engage in production. The use of interdependent preferences is justified by an extensive literature and can provide a motive for agents to take actions that block growth in the absence of theft or other concrete gains.

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  • Michael Mitsopoulos, 2009. "Envy, Institutions And Growth," Bulletin of Economic Research, Wiley Blackwell, vol. 61(3), pages 201-222, July.
    • Handle: RePEc:bla:buecrs:v:61:y:2009:i:3:p:201-222
    DOI: 10.1111/j.1467-8586.2009.00313.x
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    Cited by:

    1. Yamamura, Eiji, 2011. "Effect of social capital on income distribution preferences: comparison of neighborhood externality between high- and low-income households," MPRA Paper 32557, University Library of Munich, Germany.
    2. Boris Gershman, 2014. "The two sides of envy," Journal of Economic Growth, Springer, vol. 19(4), pages 407-438, December.
    3. Yamamura, Eiji, 2012. "Social capital, household income, and preferences for income redistribution," European Journal of Political Economy, Elsevier, vol. 28(4), pages 498-511.

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