Common and private property to exhaustible resources: theoretical implications for economic growth
AbstractWe 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.
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Bibliographic InfoPaper provided by European University at St. Petersburg, Department of Economics in its series EUSP Deparment of Economics Working Paper Series with number Ec-02/10.
Length: 20 pages
Date of creation: 18 Aug 2010
Date of revision: 29 Sep 2010
Note: Presented at the Monte Verita Conference on Sustainable Resource Use and Economic Dynamics — SURED 2010 (Ascona, Switzerland, June 7-10, 2010), the 2010 World Conference on Natural Resource Modeling (Helsinki, Finland, June 16-19, 2010) and the 11th Annual Conference of the Association for Public Economic Theory (PET10, Istanbul, Turkey, June 25-27, 2010).
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economic growth; taxation; voting;
Other versions of this item:
- Borissov, Kirill & Surkov, Alexander, 2010. "Common and private property to exhaustible resources: theoretical implications for economic growth," MPRA Paper 27524, University Library of Munich, Germany.
- Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
- E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-23 (All new papers)
- NEP-DGE-2011-01-23 (Dynamic General Equilibrium)
- NEP-ENV-2011-01-23 (Environmental Economics)
- NEP-FDG-2011-01-23 (Financial Development & Growth)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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