Borissov, Kirill and Surkov, Alexander (2010): Common and private property to exhaustible resources: theoretical implications for economic growth.
Download (266Kb) | Preview
We develop two models of economic growth with exhaustible natural resources and consumers heterogeneous in time preferences. The first model assumes private ownership of natural resources. In the second model, natural resources are commonly owned and the resource extraction rate is chosen by voting. We show that if discount factors are given exogenously, the long-run rate of growth under private property is higher than or equal to that under common property. If the discount factors are formed endogenously, under some circumstances common property can result in a higher rate of growth than private property.
|Item Type:||MPRA Paper|
|Original Title:||Common and private property to exhaustible resources: theoretical implications for economic growth|
|Keywords:||natural resources, economic growth, voting, private property, common property|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q32 - Exhaustible Resources and Economic Development
D - Microeconomics > D9 - Intertemporal Choice and Growth > D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity
|Depositing User:||Alexander Surkov|
|Date Deposited:||18. Dec 2010 20:11|
|Last Modified:||16. Feb 2013 06:34|
Alesina, A. and Perotti, R., 1996. Income distribution, political instability, and investment, European Economic Review, 40, 1203–1228.
Baron, D.P., 1996. A dynamic theory of collective goods programs, American Political Science Review, 90, 316–330.
Becker, R.A., 1980. On the long–run steady state in a simple dynamic model of equilibrium with heterogeneous households, The Quarterly Journal of Economics, 95, 375–382.
Becker, R.A., 2006. Equilibrium dynamics with many agents, in: T.M. Rose-Anne Dana, Cuong Le Van and K. Nishimura, eds., Handbook on Optimal Growth 1. Discrete Time, Springer Berlin Heidelberg, 385–442.
Bernheim, B. and Slavov, S., 2009. A solution concept for majority rule in dynamic settings, Review of Economic Studies, 76 (1), 33–62.
Borissov, K., Brechet, T., and Lambrecht, S., 2010. Median voter environmental maintenance, CORE Discussion Paper.
Borissov, K. and Lambrecht, S., 2009. Growth and distribution in an ak–model with endogenous impatience, Economic Theory, 39 (1), 93–112.
Chermak, J.M. and Patrick, R.H., 2002. Comparing tests of the theory of exhaustible resources, Resource and energy economics, 24 (4), 301–325.
Cooley, T.F. and Soares, J., 1999. A positive theory of social security based on reputation, Journal of Political Economy, 107, 135–160.
Gaddy, C.G. and Ickes, B.W., 2005. Resource rents and the russian economy, Eurasian Geography and Economics, 46 (8), 559–583.
Heal, J. et al., eds., 1974. Symposium on the Economics of Exhaustible Resources. Special issue of The Review of economic studies, vol. 41.
Heltberg, R., 2002. Property rights and natural resource management in developing countries, Journal of Economic Surveys, 16 (2), 189–214.
Hotelling, H., 1931. The economics of exhaustible resources, The Journal of Political Economy, 39, 137–175.
Krusell, P., Quadrini, V., and Rios-Rull, J.V., 1997. Politico-economic equilibrium and economic growth, Journal of Economic Dynamics and Control, 21, 243–272.
Ostrom, E. and Hess, C., 2007. Private and common property rights, SSRN eLibrary, available at http://ssrn.com/paper=1304699.
Rangel, A., 2003. Forward and backward intergenerational goods: Why is social security good for the environment?, American Economic Review, 93, 813–834.
Stiglitz, J., 1974. Growth with exhaustible natural resources: ecient and optimal growth paths, The Review of Economic Studies, 41, 123–137.