Enclosure

Taub, B.; Zhao, R.

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.

Citation

Taub, B., & Zhao, R. (2009). Enclosure. Economic Inquiry, 47(2), 377-393. https://doi.org/10.1111/j.1465-7295.2007.00119.x

• Journal Article Type: Article
• Publication Date: Apr 1, 2009
• Deposit Date: Jul 20, 2011
• Journal: Economic Inquiry
• Print ISSN: 0095-2583
• Electronic ISSN: 1465-7295
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 47
• Issue: 2
• Pages: 377-393
• DOI: https://doi.org/10.1111/j.1465-7295.2007.00119.x
• Public URL: https://durham-repository.worktribe.com/output/1507164