ENCLOSURE

Authors: TAUB, BART¹; ZHAO, RUI²

Source: Economic Inquiry, Volume 47, Number 2, April 2009 , pp. 377-393(17)

Buy & download fulltext article:

Price: $48.00 plus tax (Refund Policy)

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. (JEL P14, O11, C73)

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1465-7295.2007.00119.x

Affiliations: 1: Taub: Professor, Department of Economics, University of Illinois at Urbana-Champaign, 470E Wohlers Hall, Champaign, IL. Phone 217-333-4828, Fax: 217-244-6571, Email: b-taub@uiuc.edu 2: Zhao: Assistant Professor, Department of Economics, University of Illinois at Urbana-Champaign, 343I Wohlers Hall, Champaign, IL. Phone 217-333-4508, Fax: 217-244-6571, Email: ruizhao@uiuc.edu

Publication date: 2009-04-01