Monopoly rights: A barrier to riches

Stephen L. Parente; Edward C. Prescott

doi:10.1257/aer.89.5.1216

Monopoly rights: A barrier to riches

Stephen L. Parente, Edward C. Prescott

Research output: Contribution to journal › Article › peer-review

198 Scopus citations

Abstract

Our thesis is that poor countries are poor because they employ arrangements for which the equilibrium outcomes are characterized by inferior technologies being used, and being used inefficiently. In this paper, we analyze the consequences of one such arrangement. In each industry, the arrangement enables a coalition of factor suppliers to be the monopoly seller of its input services to all firms using a particular production process. We find that eliminating this monopoly arrangement could well increase output by roughly a factor of 3 without any increase in inputs. (JEL D58, O11, O41).

Original language	English (US)
Pages (from-to)	1216-1233
Number of pages	18
Journal	American Economic Review
Volume	89
Issue number	5
DOIs	https://doi.org/10.1257/aer.89.5.1216
State	Published - Dec 1999
Externally published	Yes

ASJC Scopus subject areas

Economics and Econometrics

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Monopoly rights: A barrier to riches

Abstract

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