Insecure property rights and growth: the role of appropriation costs, wealth effects, and heterogeneity
We extend the model from Tornell and Velasco  and Tornell and Lane  by adding three features: (i) extracting the common property asset involves a private appropriation cost, (ii) agents derive utility from wealth as well as from consumption, and (iii) agents can be heterogeneous. We show that both an increase in the appropriation cost and, when appropriation costs vary across agents, an increase in the degree of heterogeneity of these costs reduce the growth rate of the public capital stock. We also show that, in the interior equilibrium, the private asset can have either a lower or a higher money rate of return than the common property asset. Copyright Springer-Verlag Berlin/Heidelberg 2006
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 28 (2006)
Issue (Month): 3 (08)
|Contact details of provider:|| Web page: http://link.springer.de/link/service/journals/00199/index.htm|
|Order Information:||Web: http://link.springer.de/orders.htm|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gaudet, G. & Moreaux, M. & Salant, S.W., 1997.
"Private Storage of Common Property,"
97-08, Michigan - Center for Research on Economic & Social Theory.
- Jayasri Dutta & Colin Rowat, 2007.
"The Road to Extinction: Commons with Capital Markets,"
WEF Working Papers
0024, ESRC World Economy and Finance Research Programme, Birkbeck, University of London.
- Jayasri Dutta & Colin Rowat, 2004. "The Road to Extinction: Commons with Capital Markets," GE, Growth, Math methods 0412001, EconWPA.
- Jayasri Dutta & Colin Rowat, 2007. "The Road to Extinction: Commons with Capital Markets," Discussion Papers 04-11RR, Department of Economics, University of Birmingham.
- Colin Rowat & Jayasri Dutta, 2004. "The road to extinction: commons with capital markets," Econometric Society 2004 North American Summer Meetings 145, Econometric Society.
- Jayasri Dutta & Colin Rowat, 2006. "The Road to Extinction: commons with capital markets," Discussion Papers 04-11r, Department of Economics, University of Birmingham.
- Holger Strulik & Ines Lindner, 1999.
"Why not Africa? -- Growth and Welfare Effects of Secure Property Rights,"
Quantitative Macroeconomics Working Papers
19909, Hamburg University, Department of Economics.
- Ines Lindner & Holger Strulik, 2004. "Why not Africa? -- Growth and Welfare Effects of Secure Property Rights," Public Choice, Springer, vol. 120(1_2), pages 143-167, 07.
- Gerhard Sorger, 2005. "A dynamic common property resource problem with amenity value and extraction costs," International Journal of Economic Theory, The International Society for Economic Theory, vol. 1(1), pages 3-19.
- Cole, Harold L & Mailath, George J & Postlewaite, Andrew, 1992. "Social Norms, Savings Behavior, and Growth," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1092-1125, December.
When requesting a correction, please mention this item's handle: RePEc:spr:joecth:v:28:y:2006:i:3:p:513-529. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F Baum)
If references are entirely missing, you can add them using this form.