Monopoly Rights: A Barrier to Riches

Edward Prescott and Stephen Parente ()

American Economic Review, 1999, vol. 89, issue 5, 1216-1233

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-codes: O11 O14 O33 (search for similar items in EconPapers)
Date: 1999
Note: DOI: 10.1257/aer.89.5.1216
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Citations: View citations in EconPapers (300)

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Working Paper: Monopoly rights: a barrier to riches (1997)
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