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Property Rights vs. Redistribution: Which Path to National Wealth?

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  • Palda, Filip

Abstract

Recent empirical and theoretical research suggests that egalitarian income distribution may spur economic growth. Another different strand of research suggests that property rights are important. These two results are not at odds. A model of switching between a career of rent-seeking and wealth producing shows that for redistribution to boost national income, property rights need to be secure. A more equal distribution of earned income can induce rent-seekers to switch to wealth making, but only if they can be assured that their earned income will be protected from other rent-seekers. The model suggests new directions for empirical testing. Copyright 1999 by Kluwer Academic Publishers

Suggested Citation

  • Palda, Filip, 1999. "Property Rights vs. Redistribution: Which Path to National Wealth?," Public Choice, Springer, vol. 101(1-2), pages 129-145, October.
    • Handle: RePEc:kap:pubcho:v:101:y:1999:i:1-2:p:129-45
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    Cited by:

    1. Ali Hussein Samadi & Ali Hussein Ostadzad, 2015. "Estimating Property Rights Expenditures in Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 19(3), pages 359-376, Autumn.
    2. J. Amegashie, 2008. "Incomplete property rights, redistribution, and welfare," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 30(4), pages 685-699, May.
    3. Ouattara, B. & Standaert, S., 2020. "Property rights revisited," European Journal of Political Economy, Elsevier, vol. 64(C).
    4. Alexandre Couture Gagnon, 2018. "Filip Palda: In memoriam," Public Choice, Springer, vol. 174(3), pages 213-217, March.
    5. Taschowsky, Peter, 2000. "Soziale Sicherheit und Wachstum," Hannover Economic Papers (HEP) dp-237, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.

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