Interest in Private Assets and the Voracity Effect
Using a differential game, we analyze a multiple agent economy in which there are common and private capital stocks. Each interest group can access the common capital and its own private capital stocks but not anyone else's private capital stocks. Considering the situation in which each interest group can observe and has interest in the opponents' private capital stocks, we show the following. The capital stocks have a negative effect on the consumption of each agent. The growth rate of the common capital does not depend on the technology level of the common sector; that is there is no voracity effect. Each agent's welfare is always lower than it is in the case that each agent has no interest in the opponents' private capital stocks.
|Date of creation:||Feb 2013|
|Contact details of provider:|| Postal: Yoshida-Honmachi, Sakyo-ku, Kyoto 606-8501|
Web page: http://www.kier.kyoto-u.ac.jp/eng/index.html
More information through EDIRC
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.:
- Akihisa Shibata, 2002. "Strategic Interactions in a Growth Model with Infrastructure Capital," Metroeconomica, Wiley Blackwell, vol. 53(4), pages 434-460, November.
- Strulik, Holger, 2012.
"Poverty, voracity, and growth,"
Journal of Development Economics,
Elsevier, vol. 97(2), pages 396-403.
- Reynolds, Stanley S., 1991. "Dynamic oligopoly with capacity adjustment costs," Journal of Economic Dynamics and Control, Elsevier, vol. 15(3), pages 491-514, July.
- Tornell, Aaron, 1999. "Voracity and growth in discrete time," Economics Letters, Elsevier, vol. 62(1), pages 139-145, January.
When requesting a correction, please mention this item's handle: RePEc:kyo:wpaper:850. 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: (Ryo Okui)
If references are entirely missing, you can add them using this form.