Stronger Property Rights Enforcement Does Not Hurt Social Welfare - A Comment on Gonzalez’ 'Effective Property Rights, Conflict and Growth (JET, 2007)'
32 Pages Posted: 21 Jun 2013
Date Written: June 2013
In his recent paper in JET, Gonzalez (2007) issues a warning that gradual improvement in property rights enforcement may sometimes backfire and hurt social welfare through its unintended instigation of appropriative activities. By introducing a new property-rights parameter within the Gonzalez’ growth model, however, this note reinstates the monotone relationship between property rights and social welfare discredited by Gonzalez.
Keywords: Property rights, Conflict; Diversion, Investment, Growth
JEL Classification: D23, O10, O40
Suggested Citation: Suggested Citation