This paper presents a two-sector economy. In a contested sector two agents struggle to appropriate the maximum possible fraction of a contestable output. In an uncontested sector, they hold secure property rights over the production of some goods. Agents split their resource endowment between “butter”, “guns” and “ice-cream”. The latter denote productive activities secure from appropriation. It is shown how improvements in productivity can countervail destructive impact of continuous conflicts. Eventually, the basic model is extended to consider a government and a rival group. A redistributive government can boost production in the uncontested sector, but at a higher level of “guns”.

Caruso, R., Differentials in property rights in a two-sector economy, <<REVUE D'ECONOMIE POLITIQUE>>, 2012; 122 (2): 257-278. [doi:10.3917/redp.218.0257] [http://hdl.handle.net/10807/31033]

Differentials in property rights in a two-sector economy

Caruso, Raul
2012

Abstract

This paper presents a two-sector economy. In a contested sector two agents struggle to appropriate the maximum possible fraction of a contestable output. In an uncontested sector, they hold secure property rights over the production of some goods. Agents split their resource endowment between “butter”, “guns” and “ice-cream”. The latter denote productive activities secure from appropriation. It is shown how improvements in productivity can countervail destructive impact of continuous conflicts. Eventually, the basic model is extended to consider a government and a rival group. A redistributive government can boost production in the uncontested sector, but at a higher level of “guns”.
2012
Inglese
Caruso, R., Differentials in property rights in a two-sector economy, <<REVUE D'ECONOMIE POLITIQUE>>, 2012; 122 (2): 257-278. [doi:10.3917/redp.218.0257] [http://hdl.handle.net/10807/31033]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/31033
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