Predation and Accumulation
This article incorporates the economic theory of predation into the theory of economic growth. The analytical framework is a general-equilibrium model of the interaction between two dynasties: a potential predator and its prey. We find that the rate of accumulation of capital and the security of poverty are positively related only for generations of the prey dynasty that tolerate predation. Generations of the prey dynasty that choose to deter predation, even though their property is perfectly secure, accumulate productive capital more slowly than the preceding generations that tolerated predation. Copyright 1996 by Kluwer Academic Publishers
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Volume (Year): 1 (1996)
Issue (Month): 3 (September)
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