Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/155044
Authors: 
Bartolini, Stefano
Bonatti, Luigi
Year of Publication: 
1999
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 91.1999
Abstract: 
In this paper, the expansion of private production erodes the quality of commonly owned goods, thereby forcing individuals to rely increasingly on private goods to satisfy their needs. In the face of this deterioration, households keep their labour supplies and saving rates relatively high in spite of their increasing private wealth. By so doing, each household contributes to an increase in production and thus has a detrimental--though negligible--impact on commonly owned goods. Perpetual growth is the outcome of this self-fuelling process. Since long-run growth results from a co-ordination failure, it may be higher than socially desirable.
Subjects: 
Common property
defensive expenditure
co-ordination failure
undesirable growth
environmental assets
social assets
substitution process
self-fuelling process
JEL: 
O40
Q20
Document Type: 
Working Paper

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