Journal of Economic Growth

, Volume 1, Issue 3, pp 333–350

Predation and accumulation

  • Herschel I. Grossman
  • Minseong Kim
Article

Abstract

This article incorporates the economic theory of predation into the theory of economic growth. The analytical framework is a general-equilibrium model of the interaction between two dynasties: a potential predator and its prey. We find that the rate of accumulation of capital and the security of property are positively related only for generations of the prey dynasty that tolerate predation. Generations of the prey dynasty that choose to deter predation, even though their property is perfectly secure, accumulate productive capital more slowly than the preceding generations that tolerated predation.

Keywords

predation capital accumulation economic growth security of property deterrence 

Jel classification

D23 D74 E21 O41 

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Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Herschel I. Grossman
    • 1
  • Minseong Kim
    • 2
  1. 1.Brown UniversityUSA
  2. 2.University of PittsburghPittsburghUSA

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