On the dual nature of weak property rights
In the natural-resource literature, conventional wisdom holds that weak property rights will cause a resource to be over-exploited. This is because weak property rights are typically perceived as a problem of input exclusion – or theft of un-extracted resources. We present evidence to the effect that weak property rights often take the form of contestable outputs – or output theft – and that this has an impact on resource use. We propose a model of resource use under generally weak property rights – or weak state presence – when resource users face the dual problem of input exclusion and output appropriation. We show that introducing the possibility that outputs be contested acts as an output tax, with the added twist that resource users effectively determine the tax level. This tax has a depressive effect on input use. Whether the resource is under- or over-exploited depends on the relative severity of output appropriation and input exclusion problems. Increasing enforcement measures against theft may lead to severe resource overuse. Efficiency considerations require to account not only for direct resource input use, but also for thieves’ efforts and gains as well as the costs of enforcement against theft and trespass.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Olaf J. de Groot & Matthew D. Rablen & Anja Shortland, 2011.
"Gov-aargh-nance: "Even Criminals Need Law and Order","
Economics of Security Working Paper Series
46, DIW Berlin, German Institute for Economic Research.
- Olaf J. de Groot & Matthew D. Rablen & Anja Shortland, 2011. "Gov-aargh-nance - "even criminals need law and order"," CEDI Discussion Paper Series 11-01, Centre for Economic Development and Institutions(CEDI), Brunel University.
- de Groot, Olaf J. & Rablen, Matthew D. & Shortland, Anja, 2011. "Gov-Aargh-Nance – “Even Criminals Need Law And Order”," NEPS Working Papers 7/2011, Network of European Peace Scientists.
- Timothy Besley & Torsten Persson, 2010.
"State Capacity, Conflict and Development,"
- Timothy Besley & Torsten Persson, 2009. "State Capacity, Conflict and Development," STICERD - Economic Organisation and Public Policy Discussion Papers Series 010, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Besley, Timothy J. & Persson, Torsten, 2009. "State Capacity, Conflict and Development," CEPR Discussion Papers 7336, C.E.P.R. Discussion Papers.
- Timothy J. Besley & Torsten Persson, 2009. "State Capacity, Conflict and Development," NBER Working Papers 15088, National Bureau of Economic Research, Inc.
- Timothy Besley & Torsten Persson, 2009. "State capacity, conflict and development," LSE Research Online Documents on Economics 25426, London School of Economics and Political Science, LSE Library.
- Hotte, Louis, 2001. "Conflicts over property rights and natural-resource exploitation at the frontier," Journal of Development Economics, Elsevier, vol. 66(1), pages 1-21, October.
- Gary S. Becker, 1968.
"Crime and Punishment: An Economic Approach,"
Journal of Political Economy,
University of Chicago Press, vol. 76, pages 169.
- Skogh, Goran & Stuart, Charles, 1982. " A Contractarian Theory of Property Rights and Crime," Scandinavian Journal of Economics, Wiley Blackwell, vol. 84(1), pages 27-40.
- Louis Hotte, 2005.
"Natural-resource exploitation with costly enforcement of property rights,"
Oxford Economic Papers,
Oxford University Press, vol. 57(3), pages 497-521, July.
- HOTTE, Louis, 1997. "Natural-Resource Exploitation with Costly Enforcement of Property Rights," Cahiers de recherche 9720, Universite de Montreal, Departement de sciences economiques.
- Besley, Timothy J. & Ghatak, Maitreesh, 2009.
"Property Rights and Economic Development,"
CEPR Discussion Papers
7243, C.E.P.R. Discussion Papers.
- Timothy Besley & Maitreesh Ghatak, 2009. "Property rights and economic development," LSE Research Online Documents on Economics 25428, London School of Economics and Political Science, LSE Library.
- Timothy Besley & Maitreesh Ghatak, 2009. "Property Rights and EconomicDevelopment," STICERD - Economic Organisation and Public Policy Discussion Papers Series 006, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Gaudet, G. & Moreaux, M. & Salant, S.W., 1997.
"Private Storage of Common Property,"
97-08, Michigan - Center for Research on Economic & Social Theory.
- Fafchamps, Marcel & Minten, Bart, 2006. "Crime, Transitory Poverty, and Isolation: Evidence from Madagascar," Economic Development and Cultural Change, University of Chicago Press, vol. 54(3), pages 579-603, April.
- Ambec, S. & Hotte, L., 2003.
"On the redistributive impact of privitazing a resource under imperfect enforcement,"
200302, Grenoble Applied Economics Laboratory (GAEL).
- Ambec, Stefan & Hotte, Louis, 2006. "On the redistributive impact of privatizing a resource under imperfect enforcement," Environment and Development Economics, Cambridge University Press, vol. 11(06), pages 677-696, December.
- Francisco M. Gonzalez, 2005. "Insecure Property and Technological Backwardness," Economic Journal, Royal Economic Society, vol. 115(505), pages 703-721, 07.
- Robin Brooks & Michael Murray & Stephen Salant & Jill C. Weise, 1999.
"When Is the Standard Analysis of Common Property Extraction under Free Access Correct? A Game-Theoretic Justification for Non-Game-Theoretic Analyses,"
Journal of Political Economy,
University of Chicago Press, vol. 107(4), pages 843-858, August.
- Brooks, R. & Controneo, J. & Murray, M. & Salant, S., 1995. "When is the Standard Analysis of Common Property Extraction Under Free Access Correct? -- A Game - Theoretic Justification for Non Game-Theoretic Analyses," Papers 95-10, Michigan - Center for Research on Economic & Social Theory.
- McFerrin, Randy & Wills, Douglas, 2007. "High Noon on the Western Range: A Property Rights Analysis of the Johnson County War," The Journal of Economic History, Cambridge University Press, vol. 67(01), pages 69-92, March.
- Clotfelter, Charles T, 1977. "Public Services, Private Substitutes, and the Demand for Protection against Crime," American Economic Review, American Economic Association, vol. 67(5), pages 867-77, December.
- Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-88, December.
- Libecap, Gary D & Wiggins, Steven N, 1984. "Contractual Responses to the Common Pool: Prorationing of Crude Oil Production," American Economic Review, American Economic Association, vol. 74(1), pages 87-98, March.
- Ellis, Frank & Sumberg, James, 1998. "Food production, urban areas and policy responses," World Development, Elsevier, vol. 26(2), pages 213-225, February.
- de Meza, David & Gould, J R, 1992. "The Social Efficiency of Private Decisions to Enforce Property Rights," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 561-80, June.
- Erik Bryld, 2003. "Potentials, problems, and policy implications for urban agriculture in developing countries," Agriculture and Human Values, Springer, vol. 20(1), pages 79-86, March.
- Libecap, Gary D., 1978. "Economic Variables and the Development of the Law: The Case of Western Mineral Rights," The Journal of Economic History, Cambridge University Press, vol. 38(02), pages 338-362, June.
- Hotte, Louis & Long, Ngo Van & Tian, Huilan, 2000. "International trade with endogenous enforcement of property rights," Journal of Development Economics, Elsevier, vol. 62(1), pages 25-54, June.
When requesting a correction, please mention this item's handle: RePEc:eee:resene:v:35:y:2013:i:4:p:659-678. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.