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Proprietary policy and production

Publication at Faculty of Social Sciences, Faculty of Mathematics and Physics, Centre for Economic Research and Graduate Education |
2006

Abstract

I present a model of a proprietary regime with opportunities for direct production (e.g., plantation cultivation, mining extraction). The premise is that direct production is a superior method of appropriation than taxation.

The tax and spending policy of the regime distorts the resource allocation in favor of direct production and at a loss of private production; the welfare of the population suffers while the regime benefits. I examine the relevance of the model to the policies of actual proprietary regimes.