Interdependent Preferences, Obstruction and Growth

31 Pages Posted: 12 Sep 2005  

Michael S. Mitsopoulos

Hellenic Federation of Enterprises

Date Written: 2005

Abstract

A model is proposed to examine the relationship between interdependence of preferences and economic performance in the presence of an obstruction technology. In such a context the growth rate of the economy is found to depend on the relative effectiveness of the available obstruction and production technologies. Interdependence appears both as a motive to engage in harmful activities and as a force that can benefit economic growth. The parameters that determine the effectiveness of the available technologies describe the institutions that protect property and productive efforts. Both the assumptions made and the results obtained are compatible with the empirical findings of an extended literature.

Keywords: Interdependent Preferences, Obstruction, Growth, Institutional Framework

JEL Classification: O17, O40, O49

Suggested Citation

Mitsopoulos, Michael S., Interdependent Preferences, Obstruction and Growth (2005). Available at SSRN: https://ssrn.com/abstract=793426 or http://dx.doi.org/10.2139/ssrn.793426

Michael S. Mitsopoulos (Contact Author)

Hellenic Federation of Enterprises ( email )

GR-10557 Athens
Greece

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