THE PROFITABILITY OF COLONIAL INVESTMENT Journal Article

Overview

abstract

• This paper develops a model for studying colonial investment in which the metropolitan government restricts the amount of investment in the colony in order to maximize the net profits earned in the colony. The model explicitly includes the threat of subversive activity by the indigenous colonial population. The analysis suggests why historically some countries but not others became colonies and why many colonies that were initially profitable subsequently become unprofitable and were abandoned. The model also has implications for the amount of investment in colonies, the allocation of indigenous colonial labor between production and subversive activity, and the distribution of income between colonial firms and the indigenous population.

CU Boulder Authors

• Iyigun, Murat

publication date

• November 1, 1995

has restriction

• closed

Date in CU Experts

• July 8, 2014 12:43 PM

Full Author List

• Grossman HI; Iyigun MF

author count

• 2

published in

• Economics and Politics  Journal

Other Profiles

International Standard Serial Number (ISSN)

• 0954-1985

Electronic International Standard Serial Number (EISSN)

• 1468-0343

Digital Object Identifier (DOI)

• https://doi.org/10.1111/j.1468-0343.1995.tb00112.x

Additional Document Info

start page

• 229

end page

• 241

volume

• 7

issue

• 3