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Consider two countries: Country A and Country B. Country A is characterized by a command economy, ...

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Consider two countries: Country A and Country B. Country A is characterized by a command economy, ...

Consider two countries: Country A and Country B. Country A is characterized by a command economy, the absence of property rights, high entry barriers for new businesses, and forced child labor. In contrast, Country B is characterized by well-defined private property rights, a developed market system, and no entry barriers for new businesses. Which of the two countries is likely to oppose creative destruction more? Why?

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Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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