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Voracity, growth and welfare

Author

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  • Kenji Fujiwara

    (Kwansei Gakuin University)

Abstract

This paper explores some implications of the comparison between feedback Nash and Stackelberg equilibria for growth and welfare in a `voracity' model. We show that as compared to the Nash equilibrium, the Stackelberg equilibrium involves a lower growth rate while it leaves both the leaders and the followers better o , i.e., the Stackelberg equilibrium is Pareto superior to the Nash equilibrium.

Suggested Citation

  • Kenji Fujiwara, 2011. "Voracity, growth and welfare," Discussion Paper Series 77, School of Economics, Kwansei Gakuin University, revised Sep 2011.
    • Handle: RePEc:kgu:wpaper:77
    as

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    File URL: http://192.218.163.163/RePEc/pdf/kgdp77.pdf
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    References listed on IDEAS

    as
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    5. Robert J. Barro, 2003. "Determinants of Economic Growth in a Panel of Countries," Annals of Economics and Finance, Society for AEF, vol. 4(2), pages 231-274, November.
    6. Akihisa Shibata, 2002. "Strategic Interactions in a Growth Model with Infrastructure Capital," Metroeconomica, Wiley Blackwell, vol. 53(4), pages 434-460, November.
    7. Robert J. Barro & Rachel McCleary, 2003. "Religion and Economic Growth," NBER Working Papers 9682, National Bureau of Economic Research, Inc.
    8. Plumper, Thomas & Martin, Christian W, 2003. "Democracy, Government Spending, and Economic Growth: A Political-Economic Explanation of the Barro-Effect," Public Choice, Springer, vol. 117(1-2), pages 27-50, October.
    9. Mino, Kazuo, 2006. "Voracity vs. scale effect in a growing economy without secure property rights," Economics Letters, Elsevier, vol. 93(2), pages 278-284, November.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Dynamic game; Growth; Welfare; Feedback Nash equilibrium; Feedback Stackelberg equilibrium;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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