Journal article
Endogenous property rights regimes, common-pool resources and trade
Ecological economics, Vol.70(5), pp.951-962
2011
Handle:
https://hdl.handle.net/2376/114038
Abstract
A model is developed where opening to trade affects a dynamic common-pool resource stock and welfare through a community's voting decision to institute a property rights regime regulating the stock. The model finds that resource stock levels can decline even when a Markov perfect equilibrium path for labor and property rights regimes are chosen to maximize welfare. Thus, opening to trade can be welfare maximizing even when resource stock declines. Experimental results show that under certain conditions, subjects briefly follow a Markov perfect equilibrium path for property rights regime choice but labor allocations are myopically chosen indicating that some resource dynamics may be considered by subjects.
► Resource stocks may decline even if a Markov perfect equilibrium path is chosen. ► Opening to trade can be welfare maximizing even when resource stock declines. ► Experimental results show that labor allocations are chosen myopically. ► Property rights regimes choices follow a Markov perfect equilibrium path briefly.
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Details
- Title
- Endogenous property rights regimes, common-pool resources and trade
- Creators
- Gregmar I Galinato - 101 Hulbert Hall, School of Economic Sciences, Washington State University, Pullman, WA 99164, United States
- Publication Details
- Ecological economics, Vol.70(5), pp.951-962
- Academic Unit
- Economic Sciences, School of
- Publisher
- Elsevier B.V
- Identifiers
- 99900548064701842
- Language
- English
- Resource Type
- Journal article