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Differentials in Property Rights in a two sector-economy

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  • Caruso, Raul

    (Catholic University of the Sacred Heart)

Abstract

This paper presents a two-sector economy. In a contested sector two agents struggle to appropriate the maximum possible fraction of a contestable output. In an uncontested sector uncontested sector, they hold secure property rights over the production of some goods. Agents split their resource endowment between ‘butter’, ‘guns’ and ‘ice-cream’. The latter denote productive activities secure from appropriation. It is shown how improvements in productivity can countervail destructive impact of continuous conflicts. Eventually, the basic model is extended to consider a government and a rival group. A redistributive government can boost production in the uncontested sector, but at a higher level of ‘guns’.

Suggested Citation

  • Caruso, Raul, 2012. "Differentials in Property Rights in a two sector-economy," NEPS Working Papers 2/2012, Network of European Peace Scientists.
    • Handle: RePEc:ris:nepswp:2012_002
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    Cited by:

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    2. Campiglio, Luigi Pierfranco, 2013. "Famiglia e pressione fiscale [Households and tax burden in Italy: 1991-2012]," MPRA Paper 50592, University Library of Munich, Germany.
    3. Campiglio, Luigi Pierfranco, 2014. "Unbundling the Great European Recession (2009-2013): Unemployment, Consumption, Investment, Inflation and Current Account," MPRA Paper 53002, University Library of Munich, Germany.
    4. Economou Emmanouil M.L. & Kyriazis Nicholas C., 2016. "Choosing Peace Instead of War. A Lesson from Athenian Democracy," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 22(2), pages 191-212, April.
    5. Bo Chen & Chatterji Manas, 2014. "Advances in Peace Economics and Peace Science: Introduction," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 20(3), pages 373-376, August.
    6. Raul Caruso, 2015. "Identity and Incentives an Economic Interpretation of the Holocaust," DISCE - Quaderni del Dipartimento di Politica Economica ispe0072, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

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    More about this item

    Keywords

    property rights; conflict; productive and unproductive Activities; Butter; Guns and Ice-cream; appropriation; entrepreneurship; redistribution; kleptocracy;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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