Technical Change and The Commons
Dale Squires and
Niels Vestergaard ()
Additional contact information
Dale Squires: U.S. National Marine Fisheries Service
The Review of Economics and Statistics, 2013, vol. 95, issue 5, 1769-1787
This paper addresses normative exploitation of common renewable resources with changes in technology and technical, allocative, and scale efficiency that exacerbate the commons problem and externality. Their impact depends on the rate and nature of change, investment, and state of property rights. An augmented fundamental equation of renewable resources with a modified marginal stock effect and a new marginal technology effect account for changes in disembodied and embodied technology and technical efficiency. Neglecting these changes generates misleading policy advice and dynamic inefficiency with overaccumulation of physical and natural capital and sizable foregone rents. An empirical application illustrates. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Keywords: technical change; common renewable resources; fundamental equation of renewable resources; economic efficiency; investment (search for similar items in EconPapers)
JEL-codes: O3 O33 Q2 Q22 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (21) Track citations by RSS feed
Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/REST_a_00346 link to full text PDF (application/pdf)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:tpr:restat:v:95:y:2013:i:5:p:1769-1787
Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535
Access Statistics for this article
The Review of Economics and Statistics is currently edited by Amitabh Chandra, Olivier Coibion, Bryan S. Graham, Shachar Kariv, Amit K. Khandelwal, Asim Ijaz Khwaja, Brigitte C. Madrian and Rohini Pande
More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by Ann Olson ().