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A Note on Defensive Expenditures: Harmonised Law, Diverse Results

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  • Anthony Heyes

Abstract

In the context of many environmental hazards there is scope for self-defence by victims. Multiple equilibria arise in a model of bilateral precaution under a regime of strict but incompletely enforced environmental liability. This means that the same system of environmental law instigated in two economies may lead to very different outcomes. It impacts upon policy analysis in a variety of ways and provides a channel for ``cultural factors'' to matter. We explore the positive and normative effects of subsidising self-defence. Copyright Kluwer Academic Publishers 2001

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File URL: http://hdl.handle.net/10.1023/A:1011173305161
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Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 19 (2001)
Issue (Month): 3 (July)
Pages: 257-266

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Handle: RePEc:kap:enreec:v:19:y:2001:i:3:p:257-266

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  1. Sethi, Rajiv & Somanathan, E, 1996. "The Evolution of Social Norms in Common Property Resource Use," American Economic Review, American Economic Association, vol. 86(4), pages 766-88, September.
  2. Jason Shogren & Thomas Crocker, 1991. "Cooperative and noncooperative protection against transferable and filterable externalities," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 1(2), pages 195-214, June.
  3. Paul M. Jakus, 1994. "Averting Behavior in the Presence of Public Spillovers: Household Control of Nuisance Pests," Land Economics, University of Wisconsin Press, vol. 70(3), pages 273-285.
  4. Daniel, Kermit & Lott, John R, Jr, 1995. "Should Criminal Penalties Include Third-Party Avoidance Costs?," The Journal of Legal Studies, University of Chicago Press, vol. 24(2), pages 523-34, June.
  5. Krugman, Paul, 1991. "History versus Expectations," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 651-67, May.
  6. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-30, September.
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