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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 sufficiently close to stagnation.

Suggested Citation

  • Strulik, Holger, 2012. "Poverty, voracity, and growth," Journal of Development Economics, Elsevier, vol. 97(2), pages 396-403.
    • Handle: RePEc:eee:deveco:v:97:y:2012:i:2:p:396-403
    DOI: 10.1016/j.jdeveco.2011.06.007
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    Cited by:

    1. Fabbri, G. & Faggian, S. & Freni, G., 2018. "Spatial resource wars: A two region example," Working Papers 2018-04, Grenoble Applied Economics Laboratory (GAEL).
    2. Tenryu, Yohei, 2013. "The Role of the Private Sector under Insecure Property Rights," MPRA Paper 74893, University Library of Munich, Germany, revised 27 Oct 2016.
    3. Tenryu, Yohei, 2013. "The Role of the Private Sector under Insecure Property Rights," MPRA Paper 50727, University Library of Munich, Germany.
    4. Fabbri, Giorgio & Faggian, Silvia & Freni, Giuseppe, 2020. "Policy effectiveness in spatial resource wars: A two-region model," Journal of Economic Dynamics and Control, Elsevier, vol. 111(C).
    5. Strulik, Holger, 2012. "The voracity effect revisited," Mathematical Social Sciences, Elsevier, vol. 64(3), pages 272-276.
    6. Kabbashi M. Suliman, 2016. "The Political Economy of Fiscal Institutions and Macroeconomic Management in Sudan," Working Papers 1044, Economic Research Forum, revised 09 Jan 2016.
    7. Yohei Tenryu, 2017. "The role of the private sector under insecure property rights," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 64(3), pages 285-311, September.
    8. Yohei Tenryu, 2013. "Interest in Private Assets and the Voracity Effect," KIER Working Papers 850, Kyoto University, Institute of Economic Research.
    9. Edward B. Barbier & Jacob P. Hochard, 2019. "Poverty-Environment Traps," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1239-1271, November.

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    More about this item

    Keywords

    Economic growth; Property rights; Common pool resources; Voracity; Fractionalization;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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