Common and Private Property to Exhaustible Resources: Theoretical Implications for Economic Growth

Kirill Borissov and Alexander Surkov

No 2010/02, EUSP Department of Economics Working Paper Series from European University at St. Petersburg, Department of Economics

Abstract: 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.

Keywords: economic growth; taxation; voting (search for similar items in EconPapers)
JEL-codes: D91 E13 O40 Q32 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2010-08-18, Revised 2010-09-29
Note: Presented at the Monte Verita Conference on Sustainable Resource Use and Economic Dynamics Ñ 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).
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Working Paper: Common and private property to exhaustible resources: theoretical implications for economic growth (2010)
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