International Journal of Finance, Insurance and Risk Management ISSN: 2047-0916

Don´t do Land Reform: a simple theorem

Miguel Rocha de Sousa, Vanessa S. Duarte
International Journal of Finance, Insurance and Risk Management, Volume 6, Issue 4, 1210, 2016
DOI: 10.35808/ijfirm/160

Abstract:

We assess the general impact of land reforms on growth using human capital growth models due to Arrow (1962) - the main newness of the paper- after surveying the literature and building a typology. Thus, we conclude that land reform can yet been used as a modern tool to spur growth and development, but with our approach we can define the main limits and constraints that can block this growth. We conclude that a raise in undifferentiated wages after land reform leads to an unrecoverable society welfare loss; thus, yielding a lesson to political agents’ decision-makers elected after land reforms – wage raise land reform should not be used as an electoral motto.


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