Common and Private Property to Exhaustible Resources: Theoretical Implications for Economic Growth
We 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.
|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).|
|Contact details of provider:|| Postal: 3 Gagarinskaya Street, 191187 St. Petersburg|
Phone: +7 (812) 275-1130
Web page: http://www.eu.spb.ru/econ/
More information through EDIRC
References listed on IDEAS
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.:
- B. D. Bernheim & S. N. Slavov, 2009.
"A Solution Concept for Majority Rule in Dynamic Settings,"
Review of Economic Studies,
Oxford University Press, vol. 76(1), pages 33-62.
- B. Douglas Bernheim & Sita Nataraj Slavov, 2007. "A Solution Concept for Majority Rule in Dynamic Settings," Discussion Papers 07-029, Stanford Institute for Economic Policy Research.
- Thomas F. Cooley & Jorge Soares, 1999. "A Positive Theory of Social Security Based on Reputation," Journal of Political Economy, University of Chicago Press, vol. 107(1), pages 135-160, February.
- Antonio Rangel, 2003. "Forward and Backward Intergenerational Goods: Why Is Social Security Good for the Environment?," American Economic Review, American Economic Association, vol. 93(3), pages 813-834, June.
- Chermak, Janie M. & Patrick, Robert H., 2002. "Comparing tests of the theory of exhaustible resources," Resource and Energy Economics, Elsevier, vol. 24(4), pages 301-325, November.
- Kirill Borissov & Stéphane Lambrecht, 2009. "Growth and distribution in an AK-model with endogenous impatience," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 39(1), pages 93-112, April.
- BORISSOV, Kirill & LAMBRECHT, Stéphane, "undated". "Growth and distribution in an AK-model with endogenous impatience," CORE Discussion Papers RP 2134, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- BORISSOV, Kirill & LAMBRECHT, Stéphane, 2007. "Growth and distribution in an AK-model with endogenous impatience," CORE Discussion Papers 2007044, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Heltberg, Rasmus, 2002. " Property Rights and Natural Resource Management in Developing Countries," Journal of Economic Surveys, Wiley Blackwell, vol. 16(2), pages 189-214, April.
- Krusell, Per & Quadrini, Vincenzo & Rios-Rull, Jose-Victor, 1997. "Politico-economic equilibrium and economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 21(1), pages 243-272, January.
- Robert A. Becker, 1980. "On the Long-Run Steady State in a Simple Dynamic Model of Equilibrium with Heterogeneous Households," The Quarterly Journal of Economics, Oxford University Press, vol. 95(2), pages 375-382.
- repec:cup:apsrev:v:90:y:1996:i:02:p:316-330_20 is not listed on IDEAS Full references (including those not matched with items on IDEAS)