Prosperity without conflict

• 成果类型: Article
• 署名作者: Gonzalez, Francisco M.; Neary, Hugh M.
• 署名单位: University of Calgary; University of British Columbia
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2008.04.008
• 发表日期: 2008
• 页码: 2170-2181
• 关键词: Second best; optimal taxation; GROWTH; Insecure property; CONFLICT; Diversion

摘要

Social conflict and slow growth are features of many developing economies. This paper considers the role institutions of property rights and conflict management can play in both achieving prosperity and mitigating conflict in these economies. We study how introducing conflict over economic distribution into an otherwise standard model of growth can shape optimal (second-best) taxation policy when diversionary activities cannot be taxed. In this context, we find that the maximization of economic efficiency may call for a reduction in growth in order to mitigate the problem of diversion, even though the economy's growth is inefficiently slow in the absence of taxation. This is so when institutional quality is sufficiently poor, but not otherwise. The paper warns against the conventional justification of growth-promoting policies on efficiency grounds independently of institutions. (C) 2008 Elsevier B.V. All rights reserved.