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Inequality And Conservation On The Local Commons: A Theoretical Exercise

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Author Info
Jeff Dayton-Johnson (Dalhousie University)
Pranab Bardhan (University of California, Berkeley)

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Abstract

To analyse the effect of asset inequality on co--operation within a group, we consider a two--player nonco--operative model of conservation of a common--pool resource. Overexploitation by one user affects another"s payoff by reducing the next--period catch. We give necessary and sufficient conditions such that conservation is a Nash equilibrium, and show that increasing inequality does not, in general, favour full conservation. However, once inequality is sufficiently great, further inequality can raise efficiency. Thus, the relationship between inequality and economic efficiency is U--shaped. Finally, we analyse the implications for conservation if players have earning opportunities outside the commons. Copyright 2002 Royal Economic Society

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Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 112 (2002)
Issue (Month): 481 (July)
Pages: 577-602
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Handle: RePEc:ecj:econjl:v:112:y:2002:i:481:p:577-602

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  9. Pranab Bardhan., 1993. "Rational Fools and Cooperation in a Poor Hydraulic Economy," Center for International and Development Economics Research (CIDER) Working Papers C93-015, University of California at Berkeley.
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  12. Itaya, Jun-ichi & de Meza, David & Myles, Gareth D., 1997. "In praise of inequality: public good provision and income distribution," Economics Letters, Elsevier, vol. 57(3), pages 289-296, December. [Downloadable!] (restricted)
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  14. Benabou, R., 1996. "Inequality and Growth," Working Papers 96-22, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
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  15. Bardhan, Pranab, 1993. "Symposium on Management of Local Commons," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 87-92, Fall. [Downloadable!] (restricted)
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  1. Rucha Ghate, 2008. "Ensuring ‘Collective Action’ in ‘Participatory’ Forest Management," Working Papers id:1759, esocialsciences.com. [Downloadable!]
  2. Sarker, Debnarayan & Das, Nimai, 2006. "A Study of Economic Outcome of Joint Forest Management Programme in West Bengal: The Strategic Decisions between Government and Forest Fringe Community," MPRA Paper 14875, University Library of Munich, Germany, revised 2007. [Downloadable!]
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  3. Balasubramanian R, 2008. "Poverty, Private Property and Common Pool Resource Management: The Case of Irrigation Tanks in South India," Working Papers id:1735, esocialsciences.com. [Downloadable!]
  4. McCarthy, Nancy, 2004. "The relationship between collective action and intensification of livestock production: the case of Northeastern Burkina Faso," CAPRi working papers 34, International Food Policy Research Institute (IFPRI). [Downloadable!]
  5. Dwayne Benjamin & Loren Brandt & John Giles, 2004. "The Evolution of Income Inequality in Rural China," William Davidson Institute Working Papers Series 2004-654, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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  6. Schiff, Maurice, 2004. "On the inefficiency of inequality," Policy Research Working Paper Series 3360, The World Bank. [Downloadable!]
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  7. Khwaja, Asim Ijaz, 2001. "Can Good Projects Succeed in Bad Communities? Collective Action in the Himalayas," Working Paper Series rwp01-043, Harvard University, John F. Kennedy School of Government. [Downloadable!]
  8. Aggarwal, Rimjhim & Narayan, Tulika A., 2000. "Does Inequality Lead To Greater Efficiency In The Use Of Local Commons? The Role Of Strategic Investments In Capacity," Working Papers 28572, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
  9. Pranab Bardhan & Jean-Marie Baland & Sanghamitra Das & Dilip Mookherjee & Rinki Sarkar, 2002. "The Environmental Impact of Poverty: Evidence from Firewood Collection in Rural Nepal," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-126, Boston University - Department of Economics. [Downloadable!]
  10. Pranab Bardhan & Maitreesh Ghatak, 1999. "Inequality, Market Imperfections, and Collective Action Problems," Center for International and Development Economics Research, Working Paper Series 1014, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
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  11. Das, Nimai & Sarker, Debnarayan, 2006. "Reforms in Forest Management in West Bengal: A Game of Strategic Profile," MPRA Paper 14803, University Library of Munich, Germany, revised 2007. [Downloadable!]
  12. Stephan Kroll & Todd Cherry & Jason Shogren, 2007. "The impact of endowment heterogeneity and origin on contributions in best-shot public good games," Experimental Economics, Springer, vol. 10(4), pages 411-428, December. [Downloadable!] (restricted)
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  13. Juan Camilo Cardenas, 2002. "Real Wealth and Experimental Cooperation: Evidence from Field Experiments," Artefactual Field Experiments 0017, The Field Experiments Website. [Downloadable!]
  14. Russell Davidson & Adriana Cornea, 2008. "A Refined Bootstrap For Heavy Tailed Distributions," Departmental Working Papers 2008-03, McGill University, Department of Economics. [Downloadable!]
  15. Pranab Mukhopadhyay, 2008. "Heterogeneity, Commons and Privatization: Agrarian Institutional Change in Goa," Working Papers id:1777, esocialsciences.com. [Downloadable!]
  16. Suman Ghosh & Alexander Karaivanov & Mandar Oak, 2005. "A Case for Bundling Public Goods Contributions?," Working Papers 05005, Department of Economics, College of Business, Florida Atlantic University. [Downloadable!]
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  17. Dwayne Benjamin & Loren Brandt & John Giles, 2006. "Inequality and Growth in Rural China: Does Higher Inequality Impede Growth?," Working Papers tecipa-237, University of Toronto, Department of Economics. [Downloadable!]
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  18. Tarui, Nori, 2004. "Common-Property Resource Use And Outside Options: Cooperation Across Generations In A Dynamic Game," 2004 Annual meeting, August 1-4, Denver, CO 20029, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  19. Alberto Alesina & Eliana La Ferrara, 2004. "Ethnic Diversity and Economic Performance," NBER Working Papers 10313, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  20. Araujo, M. Caridad & Ferreira, Francisco H.G. & Lanjouw, Peter & Ozler, Berk, 2006. "Local inequality and project choice : theory and evidence from Ecuador," Policy Research Working Paper Series 3997, The World Bank. [Downloadable!]
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  21. Ngo Van Long & Shengzu Wang, 2008. "Resource-Grabbing By Status-Conscious Agents," Departmental Working Papers 2008-08, McGill University, Department of Economics. [Downloadable!]
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