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Don´t do Land Reform: a simple theorem

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  • Miguel Rocha de Sousa
  • Vanessa S. Duarte

Abstract

We assess the general impact of land reforms on growth using human capital growth models due to Arrow (1962) - the main newness of the paper- after surveying the literature and building a typology. Thus, we conclude that land reform can yet been used as a modern tool to spur growth and development, but with our approach we can define the main limits and constraints that can block this growth. We conclude that a raise in undifferentiated wages after land reform leads to an unrecoverable society welfare loss; thus, yielding a lesson to political agents’ decision-makers elected after land reforms – wage raise land reform should not be used as an electoral motto.

Suggested Citation

  • Miguel Rocha de Sousa & Vanessa S. Duarte, 2016. "Don´t do Land Reform: a simple theorem," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 6(4), pages 1210-1210.
    • Handle: RePEc:ers:ijfirm:v:6:y:2016:i:4:p:1210
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    References listed on IDEAS

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