The voracity effect: Comment

Arbeitspapier

In an influential article Tornell and Lane (1999) considered an economy populated by multiple powerful groups in which property rights in the formal sector of production are not protected. They obtained conditions under which the groups appropriate output from the formal sector in order to invest it in an informal sector in which productivity is lower and private property is protected. They also obtained conditions under which voracity occurs such that a permanent positive shock in the formal sector leads to lower growth. Here I show that not investing in the informal sector is a pareto-superior Nash equilibrium under the mild condition of an elasticity of intertemporal substitution in consumption smaller than unity. As a corollary, voracity disappears.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Diskussionsbeitrag ; No. 472

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Economic Growth of Open Economies ; Economic Development: General ; Fiscal and Monetary Policy in Development ; Economic Growth and Aggregate Productivity: General
• Thema: Economic growth ; common pool resources ; voracity ; Erschöpfbare Ressourcen ; Gemeingüter ; Eigentumsrecht ; Entwicklungsstufe ; Wachstumstheorie ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Strulik, Holger
• Ereignis: Veröffentlichung
• (wer): Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät
• (wo): Hannover
• (wann): 2011

Weitere Informationen

• Handle: http://hdl.handle.net/10419/66013
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ