Skip to main content
SpringerLink
Log in

Property rights vs. redistribution: Which path to national wealth?

  • Published:
Public Choice Aims and scope Submit manuscript

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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Acemoglu, D. (1995). Reward structures and the allocation of talent. European Economic Review 39: 17–33.

    Google Scholar 

  • Alesina, A. and Rodrik D. (1994). Distributive politics and economic growth. Quarterly Journal of Economics 109: 465–490.

    Google Scholar 

  • Alesina, A. and Perotti R. (1996). Income distribution, political instability, and investment. European Economic Review 40: 1203–1028.

    Google Scholar 

  • Baumol, W.J. (1990). Entrepreneurship: Productive, unproductive, and destructive. Journal of Political Economy 98: 893–921.

    Google Scholar 

  • McNeill, W.H. Plagues and peoples. Garden City NY: Anchor Press/Doubleday, 1976.

    Google Scholar 

  • Murphy, K.A., Shleifer A. and Vishny R. (1993). Why is rent-seeking so costly to growth? American Economic Review 83: 409–414.

    Google Scholar 

  • Murphy, K.A., Shleifer A. and Vishny R. (1991). The allocation of talent: The implications for growth. Quarterly Journal of Economics 106: 506–530.

    Google Scholar 

  • Olson, M. The rise and decline of nations. New Haven: Yale University Press, 1982.

    Google Scholar 

  • Scully, G.W. (1991). Rights, equity, and economic efficiency. Public Choice 68: 195–215.

    Google Scholar 

  • Scully, G.W. (1988). The institutional framework and economic development. Journal of Political Economy 143: 595–615.

    Google Scholar 

  • Usher, D. (1997). Education as a deterrent to crime. Canadian Journal of Economics 30: 367–384.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. École Nationale d'Administration Publique, 1001 Sherbrooke St. E. (#3100), Montréal, Québec, H2L 4Z1, Canada

    Filip Palda

Authors
  1. Filip Palda
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Palda, F. Property rights vs. redistribution: Which path to national wealth?. Public Choice 101, 129–145 (1999). https://doi.org/10.1023/A:1018360316035

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1018360316035

Keywords

Search

Navigation