A Macroeconomic Model with Property-Rights Capital

Minxian Sun () and Heng-Fu Zou ()
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Minxian Sun: China Economics and Management Academy, Central University of Finance and Economics

Annals of Economics and Finance, 2025, vol. 26, issue 1, 213-246

Abstract: Property-rights capital stands as a fragile entity, encountering obstacles, regressions, and challenges worldwide. This underscores the necessity to endogenize both property-rights capital accumulation and physical capital accumulation within an integrated dynamic framework. This paper explores the complex interplay between economic variables and institutional capital. The study reveals that property-rights capital, serving as institutional capital, is deeply interconnected with the accumulation of physical capital, economic growth, and development. Notably, when the cost of property-rights capital formation rises, it results in decreased long-run property-rights investment, the accumulation of property-rights capital, physical capital, and consumption. An increase in the depreciation rate of property-rights capital and a decline in total factor productivity would impact property-rights capital similarly.

Keywords: Property rights; Property-rights capital; Institutional capital; Rule of law; Economic growth; Economic development (search for similar items in EconPapers)
JEL-codes: C61 O11 P14 P16 P51 (search for similar items in EconPapers)
Date: 2025
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Related works:
Working Paper: A Macroeconomic Model with Property-Rights Capital (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2025:v:26:i:1:sunzou

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