Ítem
Acceso Abierto
Poor people and risky business
Título de la revista
Autores
Zuleta, Hernando
Fecha
2006
Directores
ISSN de la revista
Título del volumen
Editor
Universidad del Rosario
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Métricas alternativas
Resumen
Abstract
We try to explain why economic conflicts and illegal business often take place in poor countries. We use the concept of subsistence level of consumption (d) and assume a regular concave utility function for consumption levels higher than d. For consumption levels lower than d utility is constant and equal to zero. Under this framework poor agents are risk-lovers. This result helps to explain why economic conflicts are more likely to appear in poor economies and why poor agents are more willing to undertake illegal business.
Palabras clave
Keywords
Poverty , Income Distribution , Illegal Business
Buscar en:
Zuleta, H. (2006). Poor people and risky business. Bogotá: Universidad del Rosario.
