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Enclosure

Taub, B.; Zhao, R.

Authors

B. Taub

R. Zhao



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

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