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Unformatted text preview: (i) level effect - overall reduction in investment (ii) composition effect - invest in assets which are vulnerable to ex-propriation 2. Gains from Trade • gains from trade may be realised institutions where land is disposed of to someone who has a better use for it (standard comparative ad-vantage argument)- incomplete property rights - impair trade in land - true, in particular, for rights to sell or rent land- improving possibilities for trade in land can improve investment in-centives when the gains from trade raise the marginal returns to land Development Economics, LSE Summer School 2007 63...
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This note was uploaded on 12/29/2011 for the course ECO 307 taught by Professor Dublin during the Spring '10 term at SUNY Stony Brook.
- Spring '10