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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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  • Anthony Heyes, 2001. "A Note on Defensive Expenditures: Harmonised Law, Diverse Results," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(3), pages 257-266, July.
  • Handle: RePEc:kap:enreec:v:19:y:2001:i:3:p:257-266 DOI: 10.1023/A:1011173305161
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    5. Paul Krugman, 1991. "History versus Expectations," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 651-667.
    6. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-930, September.
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