Groupe d’études et de recherche en analyse des décisions

Growth and insecure private property of capital

Bertrand Crettez Université de Paris 2, France

This paper revisits Strulik's model of growth with insecure property rights. In this model different social groups devote some effort to control a share of the capital stock. We show that a slight variation in the modeling of strategic interactions results in the coexistence of savings and efforts to control a share of the capital stock. We also study the effects of a change in the number of social groups, on growth. We also show that an increase in social fractionalization may lead to less effort devoted to control capital and to a higher growth rate.


Entrée gratuite.
Bienvenue à tous!