Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

The Tragedy of the Commons and Economic Growth: Why Does Capital Flow from Poor to Rich Countries?

Aarón Tornell and Andrés Velasco
Journal of Political Economy
Vol. 100, No. 6, Centennial Issue (Dec., 1992), pp. 1208-1231
Stable URL: http://www.jstor.org/stable/2138831
Page Count: 24
  • Read Online (Free)
  • Download ($14.00)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available

Abstract

We analyze a differential game in which all interest groups have access to a common capital stock. We show that the introduction of a technology that has inferior productivity but enjoys private access may ameliorate the tragedy of the commons. We use this model to analyze capital flight: in many poor countries, property rights are not well defined; since "safe" bank accounts in rich countries (the inferior technology) are available to citizens of these countries, they engage in capital flight. We show that the occurrence of capital flight does not imply that opening the capital account reduces growth and welfare.

Page Thumbnails

  • Thumbnail: Page 
1208
    1208
  • Thumbnail: Page 
1209
    1209
  • Thumbnail: Page 
1210
    1210
  • Thumbnail: Page 
1211
    1211
  • Thumbnail: Page 
1212
    1212
  • Thumbnail: Page 
1213
    1213
  • Thumbnail: Page 
1214
    1214
  • Thumbnail: Page 
1215
    1215
  • Thumbnail: Page 
1216
    1216
  • Thumbnail: Page 
1217
    1217
  • Thumbnail: Page 
1218
    1218
  • Thumbnail: Page 
1219
    1219
  • Thumbnail: Page 
1220
    1220
  • Thumbnail: Page 
1221
    1221
  • Thumbnail: Page 
1222
    1222
  • Thumbnail: Page 
1223
    1223
  • Thumbnail: Page 
1224
    1224
  • Thumbnail: Page 
1225
    1225
  • Thumbnail: Page 
1226
    1226
  • Thumbnail: Page 
1227
    1227
  • Thumbnail: Page 
1228
    1228
  • Thumbnail: Page 
1229
    1229
  • Thumbnail: Page 
1230
    1230
  • Thumbnail: Page 
1231
    1231