Taub, B. and Zhao, R. (2009) Enclosure. Economic Inquiry, 47(2), pp. 377-393. (doi: 10.1111/j.1465-7295.2007.00119.x)
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Abstract
We model the development of property rights as an endogenous process, driven by capital accumulation. Property rights internalize the portion of the return to capital that is otherwise treated as common property. This enclosure further encourages capital accumulation and sustains economic growth. We view effective property rights as multilateral agreements among agents that can only be implemented and sustained when agents are sufficiently patient. Patience is determined by the marginal product of capital; the marginal product of capital shrinks, and consequently patience increases, as capital grows. Hence, property rights can be established only when an economy is rich enough.
| Item Type: | Articles |
|---|---|
| Status: | Published |
| Refereed: | Yes |
| Glasgow Author(s) Enlighten ID: | Taub, Professor Bart |
| Authors: | Taub, B., and Zhao, R. |
| College/School: | College of Social Sciences > Adam Smith Business School > Economics |
| Journal Name: | Economic Inquiry |
| ISSN: | 0095-2583 |
| ISSN (Online): | 1465-7295 |
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