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Property Rights, Predation, and Productivity *
Author(s) -
Río Fernando
Publication year - 2019
Publication title -
the scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/sjoe.12294
Subject(s) - decile , economics , index (typography) , productivity , welfare , per capita , consumption (sociology) , imperfect , deadweight loss , distribution (mathematics) , property rights , standard deviation , agricultural economics , macroeconomics , microeconomics , population , statistics , mathematics , market economy , mathematical analysis , social science , linguistics , demography , philosophy , sociology , world wide web , computer science
I develop a neoclassical growth model with imperfect property rights in which predation entails both waste of resources and deadweight losses. According to the model, in the United States, the welfare costs of crime represent a loss of 18.6 percent of consumption per capita. This loss is 57.8 percent for a country in the average of the last decile of the distribution of an index of business costs of crime across 94 countries. An increase of one standard deviation in the institutional quality index increases GDP per worker by 23 percent for a country in the average of the last decile of its distribution.