poverty and environmental degradation in the nicaraguan hillsides abstract this article questions the assumption of poverty as a major cause of environmental degradation examining five environmentally harmful natural resource management practices in the nicaraguan hillsides it shows that the immediate agents of environmental degradation are the nonpoor farmers not the poorest it argues that to analyze the causal links between poverty and environment a distinction between poverty as a state of deprivation and poverty as a relational phenomenon is necessary finally the article warns that the often strategic reference to poverty as the major cause of environmental degradation made by nonpoor and poor farmers may lead to negative environmental impacts

a coasian perspective on informal rights assignment among waste pickers in the philippines this paper examines in light of the coase theorem how delineation of a degree of enforceable rights for a previously open access dumpsite in the philippines would affect market transactions of waste pickers it shows that a simplistic exclusion solution was not enough to constrain rent dissipation of recyclables in the primeval land fill some intervention of non government organisations backed by some initial government assistance were found helpful in reducing transaction costs to sustain operations and promote innovations and initiatives from the scavengers themselves despite obvious external economic difficulties

impacts of access and benefit sharing on livelihoods and forest case of participatory forest management in ethiopia the introduction of participatory forest management pfm may involve the exclusion of previous forest users from accessing forest resources this is the case for pfm in the two ethiopian pioneer sites dodola and chilimo that represent two distinct pfm approaches in ethiopia this paper analyses how pfm after controlling pre pfm differences affects members of forest user groups fugs and non members total annual incomes forest incomes expenditures and livestock asset holdings income and asset data were collected from 635 randomly selected households data were analysed using propensity score matching models results show that in dodola where commercial timber harvest is allowed the introduction of pfm means that fugs have higher livestock assets and forest income than non members the average total income and the expenditure for members and nonmembers however were not significantly different in chilimo site the result is the opposite the introduction of pfm means that fug members have lower total incomes and assets than non members based on our findings we recommend that the pfm scaling up approaches in ethiopia which currently allow fugs only subsistence use from forest resources need to be revised

rules and games this paper reconsiders the relationship between the rules of a game and its outcomes we develop a notion of rule reform that leads to the selection of pareto improved equilibria points we then apply this notion to a series of naturally occurring fishing rules including examples from malaysia india brazil turkey and canada we show that reforming a game is conceptually akin to reforming an economy

natural resource federalism preferences versus connectivity for patchy resources we examine the efficiency of centralized versus decentralized management of spatially connected renewable resources when users have heterogeneous preferences for conservation versus extraction resource mobility induces a spatial externality while spatial preference heterogeneity drives a wedge between users privately optimal extraction rates we first address these market failures analytically and show that the first is most efficiently handled with centralized planning while the second is best tackled with decentralized management except in special cases neither approach will be first best but which arises as second best depends on the relative strength of preference heterogeneity versus spatial mobility of the resource we illustrate the theory and test its robustness with a numerical example

flypaper effects in transfers targeted to women evidence from brac s targeting the ultra poor program in bangladesh abstract many development interventions target transfers to women however little evidence directly explores the flypaper effects of whether women retain control over these transfers once within the household and how reallocation of the transfers affects women s empowerment we study these dynamics in the context of brac s randomized cfpr tup program in bangladesh which provides livestock and training to rural women in ultra poor households our analysis confirms previous findings that cfpr tup increased household asset ownership but shows complex effects on targeted women women appear to retain ownership over transferred livestock but new investments from mobilized resources are largely owned by men cfpr tup also reduces women s movement outside the home and control over income consistent with transferred livestock requiring maintenance at home however beneficiary women also report intangible benefits such as increased social capital and even with limited mobility a preference for work inside the home given a hostile environment outside the home

economic growth and environmental degradation the environmental kuznets curve and sustainable development abstract in this paper we critically examine the concept of the environmental kuznets curve ekc it proposes that there is an inverted u shape relation between environmental degradation and income per capita so that eventually growth reduces the environmental impact of economic activity the concept is dependent on a model of the economy in which there is no feedback from the quality of the environment to production possibilities and in which trade has a neutral effect on environmental degradation the actual violation of these assumptions gives rise to fundamental problems in estimating the parameters of an ekc the paper identifies other econometric problems with estimates of the ekc and reviews a number of empirical studies the inference from some such ekc estimates that further development will reduce environmental degradation is dependent on the assumption that world per capita income is normally distributed when in fact median income is far below mean income we carry out simulations combining ekc estimates from the literature with world bank forecasts for economic growth for individual countries aggregating over countries to derive the global impact within the horizon of the bank s forecast 2025 global emissions of so 2 continue to increase forest loss stabilizes before the end of the period but tropical deforestation continues at a constant rate throughout the period

property rights in uk uplands and the implications for policy and management abstract rural areas are subject to changing and often competing demands where agricultural production was once paramount it now competes with other ecosystem services such as carbon storage rural amenity and wildlife habitat if rural areas are to be managed to produce this broad range of goods and services then more diverse and complex management regimes are needed this paper explores the literature on property rights before using a property rights bundle approach in the uk uplands to 1 examine the distribution of property rights between stakeholders in a multi resource system and 2 evaluate the effect of state intervention on the redistribution of property rights and the resulting management regimes private land owners were found to be the dominant type of property rights holder and private property the dominant management regime in the uplands of the uk government intervention has also created private state regimes for some public goods such as biodiversity but common property management is still in its infancy with regards to ecosystem services and few stakeholders have claimant rights over resources as a result many stakeholders are unable to influence management to produce the goods that they want a property rights perspective highlights that single management regimes alone are unlikely to manage land sustainably for both private and public goods instead a complex mix of private private state and common property regimes are found to be emerging in this multi resource system these mixed management regimes have the potential to produce sustainable outcomes but only if the appropriate management regime is matched to each resource if links are developed between each regime to deal with conflict and if mixed management is adaptable enough to cope with new and changing demands

rethinking the economics of water an assessment water is rising on the policy agenda as population growth and climate change intensify scarcity shocks and access inequalities the conventional economic policy recommendations privatization pricing and property rights have struggled due to a failure to account adequately for the politics of water and the associated distributional conflicts we identify distinctive social and physical characteristics of water supply and demand and explore their implications for three central areas of water policy financing infrastructure pricing and property rights reform growing dependence on groundwater and non networked water supplies exacerbates these challenges and reinforces the need to rethink the economics of water and tackle the political challenges head on meeting the water sustainable development goals would require institutional and technological innovations to supply allocate and manage water as well as a sustained political and financial commitment to address those who might be left behind

australasian money demand stability application of structural break tests estimates of the demand for money provide important foundations for monetary policy setting but if the estimation technique does not explicitly account for structural changes then such estimates will be biased this paper presents an investigation into the level and stability of money demand m1 for australia and new zealand over the 1960 2009 period and demonstrates that both countries experienced regime shifts australia also experienced an intercept shift application of four time series methods provide consistent results with 1984 and 1998 break dates cusum and cusumsq stability tests reveal that m1 demand functions were unstable over the 1984 to 1998 period for both countries although tests for stability are not rejected thereafter

a systemic approach to modelling and estimating demand for money ies this article uses a consumer theory based systemic approach to model the demand for monetary liquid asset holdings in chile we implement the suggestions and caveats of aggregation theory for the estimation of a demand system for liquid assets monies in static dynamic and time varying parameters setups our results are robust and theoretically consistent with consumer theory restrictions as a system derived from a utility maximizing framework and a quasi concave utility function in our estimations we find stability of interest rate elasticities in contrast to previous related literature we also document evidence that long short maturity rates are associated to less more liquid assets

intra generational equity and sustainable welfare a time series analysis for the uk and sweden this paper discusses the importance of intra generational equity to sustainable development it outlines a number of methodologies for measuring income inequality in the economy and presents several possible ways of incorporating the impact of distributional effects into measures of welfare in the economy the authors highlight in particular an index developed by atkinson atkinson a b 1970 distributive politics and economic growth q j econ may 465 490 based on the social welfare model this method possesses two main advantages over other methods firstly it is expressed directly in terms of social well being secondly value judgements incorporated into the measure are made explicit through the parameter o which expresses society s degree of aversion to income inequality the paper calculates the value of the atkinson index for two case study countries sweden and the uk between 1950 and 1996 for a central estimate of o0 8 the results show that the welfare loss due to inequalities in the distribution of income varied between 5 and 10 for sweden and between 6 and 14 for the uk with the higher values coming towards the end of the period the paper explores the sensitivity of these results to changes in the value of o for the case of the uk and discusses the relevance of the work to the measurement of sustainable welfare 2000 elsevier science b v all rights reserved

the intra country distributional impact of policies to fight climate change a survey abstract in this paper we present a survey of distributional impact analysis of environmental policies with emphasis on taxes envisaged or implemented to reduce greenhouse gas emissions ghg these policies usually aim at reducing ghg directly or indirectly however they can produce important changes in factor allocation relative prices in specific countries as well as on world markets when adopted by a large number of countries changes in welfare can be important for vulnerable groups of population in developing countries this survey reviews the evidence on the incidence of these policies in the process it shows that the computable general equilibrium cge microsimulation approach has not been fully exploited in the context

poverty income distribution and policy making this paper deals with the key distributional issues arising from the regulation of the environment and the management of natural resources the paper is divided into a section dealing with poverty and a section dealing with broader income distribution effects although there is much discussion of the linkages of poverty to environmental degradation empirical studies establishing these linkages are few the relationship is critically dependent on the institutional structures in the countries concerned and how they respond to changing environmental pressures on the broader distributional impacts the papers focusses on the analysis of ganiers and losers from environmental regulations the analysis is complex because the direct incidence is not the same as the final incidence much of the work has looked only at the former in addition the political economy of regulation needs to pay greater attention to impacts on key and vulnerable groups more so than can be done by looking at broad income bands

arm breaking consumer credit and personal bankruptcy the consumer credit transaction is analyzed as a contract which provides insurance as well as present consumption for the borrower creditors remedies such as arm breaking are shown to facilitate provision of insurance forgiveness of debts when lenders cannot monitor outcomes alternatively if outcomes are observable but lenders do not ex ante know the risk associated with each borrower the market may generate an excessive amount of arm breaking and agreements to forgo discharge following bankruptcy as low risk borrowers signal their characteristics suggesting that government limitations on such provisions might be efficient the secured credit transaction is shown to be a complex contract which attempts to provide efficient repayment seller incentives for performance and mitigation following default and insurance for the borrower garnishment and discharge of debts following bankruptcy are also considered

assessing poverty deforestation links evidence from swat pakistan abstract this paper contributes to the debate on the links between poverty and forestry degradation the view that due to poverty and the meeting of subsistence needs the poor use natural resources more intensively and hence cause them to degrade using the case of the forest rich swat district pakistan the paper addresses the issue empirically historically and institutionally we do not find empirical support for the poverty environment nexus in that the poor and other income groups are equally resource dependent and also show that resource degradation is not associated with poverty our historical and institutional analyses provide alternative explanations for resource degradation selective and rotating ownership patterns starting with the 17th century provided limited incentive for resource conservation it also created tension between de jure and de facto owners that has persisted and is one source of forest degradation ill defined resource rights have also exacerbated the impacts of several other factors contributing to forest degradation which is compounded by poor management corruption and perverse incentives

gender property rights and natural resources abstract attention to gender differences in property rights can improve the outcomes of natural resource management policies and projects in terms of efficiency environmental sustainability equity and empowerment of resource users although it is impossible to generalize across cultures and resources it is important to identify the nature of rights to land trees and water held by women and men and how they are acquired and transmitted from one user to another the paper particularly examines how the shift from customary tenure systems to private property in land trees and water has affected women the effect of gender differences in property on collective action and the implications for project design

understanding how income influences willingness to pay for joint programs a more equitable value measure for the less wealthy the preponderance of evidence from many studies is that less wealthy households are subjected to greater exposure per capita and in aggregate to air pollution water pollution and toxic wastes it also is the case that the less wealthy are provided with a disproportionately low amount of other programs to enhance amenities provided by the natural environment such as recreational resources and high quality esthetic opportunities both quality and quantity however to date no study has quantified the scale of this effect on the less wealthy as compared to their more wealthy counterparts when it comes to policy choices made on the basis of benefits analysis this study provides a new equity adjustment method to measure quantitatively the effect of this inequity in the case of public goods

debt poverty and resource management in a rural smallholder economy this paper develops a model to capture the key features of poverty credit constraints and resource management faced by poor rural households we assume that due to the existence of asymmetric information and moral hazard the household faces an increasing cost of credit as its debt equity ratio rises a household exploiting a natural resource may fall into a poverty trap but only if it is unable to afford the increasing borrowing costs implied by increasing debt to allow it to avoid such a trap or if it discounts future utility so much that a balanced growth path cannot be financed at any level of long run borrowing in contrast along an optimal balanced growth path the household s asset wealth purchased inputs resource stock and consumption increase at the same constant rate however over the long run there may be carrying capacity limits that prevent the resource from improving further the household may then direct its savings to accumulating financial assets and eventually under certain conditions may become a net creditor with resource exploitation becoming a less and less important source of its income

the stability of long run money demand in five industrial countries abstract this study provides strong evidence for the stability of long run demand functions for narrowly defined money m1 in five industrial countries u s japan canada u k and west germany using post war quarterly data evidence of stability is examined using two different estimation techniques and through a formal test of parameter constancy designed specifically for cointegrating vectors in the majority of these countries the key to stability is the imposition of a unitary long run income elasticity that is rarely rejected by the data

contracting problems and regulation the case of the fishery the inefficiencies of common property fisheries are of continuing concern to economists the early work by scott gordon 1954 and anthony scott 1955 outlined the problem and later studies by james crutchfield and giulio pontecorvo 1969 and frederick bell 1972 provided empirical estimates of the losses that result those studies were followed by the dynamic models of colin clark 1976 and james quirk and vernon smith 1970 of optimal harvest rates and the use of corrective taxes or quotas to achieve them but in spite of a large and growing literature and the persuasiveness of the outlined efficiency criteria most fisheries retain common property aspects with overcapitalization and excessive labor input why those conditions persist and the failure of the regulatory response to them are the issues addressed in this paper we examine a number of fisheries but focus on the texas shrimp industry which is one of the nation s most valuable fisheries for a single species and which shares the common property characteristics observed elsewhere it is considered overcapitalized and catch per unit of effort is falling 2 examination of the fishery reveals the many margins along which rent dissipation occurs and the nature of the regulations necessary for controlling fishing effort to avoid those losses the regulatory environment in texas is complicated by conflict within the fishery between inshore and offshore fishermen the latter assert that bay shrimping reduces the number of shrimp that successfully migrate to the gulf the inshore fishery is highlighted by another issue the recent resettlement of some 30 45 000 vietnamese refugees including many fishermen along the texas coast marine advisory service paul starr their entry has been met by hostility and violence from existing shrimpers who recognize that they are in an environment characterized by the absence of property rights bay shrimpers have lobbied the texas legislature for broad limits on new entrants yet ironically the sale of additional boats by individual shrimpers to the vietnamese has facilitated entry of the refugees into the fishery regulations in the texas shrimp and other fisheries are incomplete leaving many options for rent dissipation uncontrolled because of high contracting costs among fishermen and political factors that mold government actions contracting costs are high among heterogeneous fishermen who vary principally with regard to fishing skill 3 montana state university and texas a m university respectively we benefitted from comments by terry anderson raymond c battalio gardner brown oscar burt micha gisser wade griffin john r moroney anthony d scott peter temin and participants in workshops at texas a m university and the university of washington research assistance was provided by scott barnhart and phil mizzi funding was provided by sea grant texas a m university throughout this paper we use the terms common property and open access interchangeably here the terms describe a situation where no property rights group or individual exist s for the resource 2catch per unit of effort in the inshore texas gulf and federal gulf waters is presented for 1963 77 by w l griffin c g tydlacka and w e grant they show catch per unit of effort generally falling in inshore and offshore waters while catch per unit of effort fluctuates from year to year it falls from approximately 360 kg shrimp per unit of effort to 220 kg from 1963 to 1977 the common property nature of the fishery is reflected in the following statistics since 1975 the number of vessels has grown by 23 percent nelson swartz for fish houses the record of entry is similar between 1970 a d 1977 the number of firms grew from 259 to 287 though during that period many left the industry as others entered the number of fish houses was calculated from license data supplied by the texas parks and wildlife department the record of entry by fish houses suggests that monopsony as discussed by colin clark and gordon munro is absent in the fishery 3there may be minor differences in labor leisure choices and capital but our statistical evidence and discussions with fishermen indicate that catch variations are largely due to skill government regulations in the texas bays restrict capital and our empirical evidence shows boats to be relatively homogeneous

subdividing the commons distributional conflict in the transition from collective to individual property rights in kenya s maasailand summary this paper suggests that explanations of property rights transformation need to move beyond models of relative price change and state enforcement to include accounts that accommodate conflict and competition among actors and the possibility that state actors may not provide the enforcement that is often taken for granted the transition from collective to individualized holdings in kenya s maasailand is burdened with politics and procedural problems that can undermine the gains anticipated in that move moreover in semi arid ecological settings individualization results in unstable land holdings necessitating re contracting and reaggregation by individual parcel owners

poverty and resource dependence in rural india abstract previous studies of rural households in developing countries have tended to find that the dependence of these households on common pool resources declines with income our study of households in jhabua india finds a more complex relationship using the share of resource income in total long run or permanent income as our dependence measure which we argue is more appropriate than the short run income based measure commonly used in the literature we find that for households that collect any resources at all dependence exhibits a u shaped relationship with income that is the poorest and richest households depend more on resources than households with intermediate incomes the poorest and richest households are also found to be least likely to collect however indicating that resource use at the income extremes is bimodal either zero or above average moreover the observed trends for resources as a whole are not mirrored in those for individual resources dependence on fuelwood and dung declines with income for example while dependence on fodder and construction wood increases these findings suggest that common pool resources are a productive source of income not just for the poor but also for the rich and that improvements in the stocks of these resources can potentially form the basis of poverty reduction efforts in these economies

water from basic need to commodity a discussion on gender and water rights in the context of irrigation abstract this paper examines the implications of changing water policies for women s water rights and access to water in irrigation systems with growing water scarcity and programs to increase the efficiency of water allocation and delivery the allocation of water rights becomes critical although women often have informal means and mechanisms to obtain and secure access to water in most systems studied there is no recognition of women s specific water needs especially for production as opposed to domestic consumption current policies to privatize and devolve management of irrigation need to increase responsiveness to specific women s water needs and interests if they are to address efficiency as well as equity concerns

understanding the evolution and performance of water markets and allocation policy a transaction costs analysis framework abstract water markets and associated allocation policy reforms have struggled to achieve their intended goals in many water stressed rivers in part due to the institutional friction imposed by transition and transaction costs this paper elaborates a transaction costs analysis framework to examine the evolution and performance of water markets and allocation policy reforms this analysis rests on three pillars i a synthesis of three theoretical traditions of institutional analysis williamson north and ostrom often considered independently ii a framework to examine the types and interactions of transaction costs in market based water allocation over time and iii an illustrative analysis of three large river basins the colorado columbia and murray darling with varying levels of success in market based water policy reforms the resulting framework accounts for water s complexity as an economic good this framework and the case studies lead to the identification of several policy implications including the need for a multiphase sequencing of reform strategic investment in institutional transition costs and institutional choices that preserve future flexibility to adjust water rights and diversion limits to manage social and environmental externalities

cross compliance as payment for public goods understanding eu and us agricultural policies cross compliance cc is a mechanism for encouraging farmers to fulfill certain environmental conditions in return for governmental support payments introduced to united states us and european union eu agricultural policy from the 80s onwards upcoming new us farm bill 2012 and eu common agricultural policy after 2013 policies will include cc cross compliance is seen i as a policy for enforcing environmental objectives or ii as a way to organize and reward agricultural public good production in recent years the instrument s effectiveness and efficiency have been criticized to validate the deviating understandings we drew back on an economic institutionalist perspective we found that regarding eu cc as payment for public goods does not generally align with the existing german property rights distribution in both the eu and us cc standards above those contained regulatory law have characteristics of a payment for public goods but create severe problems we conclude that cc even if useful for triggering and broadening environmental protection efforts may cause several long term problems therefore the rights structure should be clearly communicated law enforcement function should be temporary the instrument should be included in an overall concept and payments should be better linked to the environmental output

have structural changes eliminated the out of sample ability of financial variables to forecast real activity after the mid 1980s evidence from the canadian economy this article evaluates how consistently reliable the information content of individual financial variables is for canada s future output growth we estimate the timing of structural changes in linear growth models and check robustness to specification changes multiple breaks and business cycle asymmetry our simulated out of sample forecast evaluation strategy using the mean square error f type mse f and the new encompassing enc new tests shows that the leading information content of most financial variables for canada s future gross domestic product gdp growth has deteriorated substantially after 1984 04 but the 1 3 year term spread exhibits a consistently reliable predictive ability at the 1 and 2 quarter horizons and has significant forecasting ability at the 8 quarter horizon also the real m1 money growth has regained its ability to forecast output growth since 1991 01

structural changes and the us money demand function previous literature on the stability of the us money demand function suggests mixed results in this article we study the stability of the money demand function from the standpoint of structural changes in the function we first investigate if a stable money demand function can be found for the us for the period from the first quarter of 1959 to the fourth quarter of 2000 the results show that a stable long run money demand function does not exist for the sample period under consideration we then estimate unknown structural break points in the variables of the money demand function using bai and perron s 1998 method and test if there is a stable relationship in each sub sample period of the break points the results show that a stable relationship exists for each sub sample period the estimated income elasticity and interest rate semi elasticity are relatively smaller than ball s 2001 estimates but consistent with his argument

portfolio management of wild fish stocks abstract managing fish stocks in terms of a portfolio of economic assets is likely to significantly increase benefits for society relative to single species approaches a portfolio framework systematically combines fish stocks that are joined by ecology e g predation competition and unspecialized fishing technologies e g mixed species trawls into a portfolio which balances expected aggregate returns against the risks associated with stock attribute and other uncertainties to be productive however this framework must be combined with property rights institutions that clearly state management objectives create long run time horizons among harvesters internalize spillovers caused by ecological and technological jointness and reduce uncertainty through research and adaptive management although the cost of reducing scientific uncertainty about ecological interactions may limit the portfolio approach to intensive management of relatively few species its scope can be broadened to integrate tradeoffs among more types of marine resources such as nature preserves and oil and gas deposits

long run income and interest elasticities of money demand in the united states econometric techniques designed to accommodate nonstationary data are used to reexamine the stability of interest and income elasticities of money demand in the united states estimates based on postwar monthly data reveal a stable relationship between m1 velocity and various measures of interest rates that proxy the opportunity cost of holding money balances tests for the existence of cointegration and methods used to estimate the income and interest elasticities are based on procedures prescribed by soren johansen 1988 corresponding error correction estimates offer insight as to the dynamics of the process that maintains the equilibrium relation between velocity and interest rates copyright 1991 by mit press

urban commons service generation delivery and management a conceptual framework abstract urban commons are currently not studied holistically under the rationale used by the ecosystem cascade framework in this paper we build on the ecosystem cascade framework to present a conceptual model that provides a comprehensive view of urban common resources and allows decision makers to develop suitable interventions to meet objectives of sustainability and equity the model looks at the role of and explains the linkages between urban commons biophysical structures user population characteristics power dynamics use behavior benefits generated and management strategies the model adds to existing literature by focusing on direct benefits and equity and by elaborating on the role of transaction costs and management strategies in governing urban commons considering direct benefits allows for a complete picture of overall benefits while making governance decisions as opposed to considering benefits received only through human effort focusing on power asymmetries between stakeholders highlights the inequities created in accessing benefits from urban commons elaborating on management strategies provides greater insight into the complexities of managing urban commons and the impacts that governance decisions can have finally including transaction costs highlights the factors that influence costs of managing resources we illustrate the use of the model with literature from urban india

the race for property rights economics literature on the evolution of property rights has increasingly emphasized the optimal timing for establishing those rights yoram barzel dale mortensen 2 and partha dasgupta and joseph stiglitz 3 for example have shown that competition among firms for the rents associated with innovative devices and ideas can lead to the dissipation of those rents in the process when property rights and the rents therefrom are up for grabs it is possible for expenditures to establish rights to fully dissipate the rents leaving the efficiency gains from privatization in question 4 before any conclusions about the welfare gains from establishing property rights can be reached attention must be paid to the evolutionary

land property rights and resource allocation abstractin this paper we review the most significant empirical literature on the causal effects of land property rights the literature indicates that secure property rights boost investment in both rural and urban areas these effects however do not appear to be the result of improved credit conditions in rural areas clear land rights also lead to increases in productivity and farm earnings in contrast for urban areas the evidence for an effect on earnings is mixed we find little empirical evidence to suggest that land titling programs enhance the development of land markets finally some evidence suggests that land titling induces changes in household structure that foster human capital accumulation and may help to increase the incomes of future generations

poverty and environment in latin america concepts evidence and policy implications abstract who is responsible for the ongoing degradation of natural resources such as agricultural soils rangeland and forests evidence from across latin america suggests that the nonpoor and the poor are both at fault while the poor lack the means to invest in protecting natural resources both the nonpoor and the poor often lack the incentives for good resource stewardship policies for agricultural intensification and livelihood diversification can alleviate poverty and its capacity constraint but incentive policies for good stewardship are critically needed such policies should be targeted to specific environmental problems and tailored to the motivations of rural decision makers

rhetoric and reality in protected area governance institutional change under different conservation discourses in mount elgon national park uganda abstract the approach to governance of protected areas has been in transition over last decades partly driven by evolving policy discourses that shape the ways in which conservation is thought to be delivered the most influential discourses are the fortress approach community conservation and back to the barriers how different discourses translate and are instituted on ground are however complex and disputed inclusive policy strategies in relation to local involvement in developing countries are of particular concern the study analyses how conservation policy discourses have become manifested taking the case of mount elgon national park menp uganda it outlines main conservation policy discourses analyses actor s interests and power relations and further examines how institutions for park governance have evolved and changed according to the different discourses the results indicate that conservation discourses and donor support come and go while menp seems to outlast all the worrying reality is that menp administration strongly influenced by the interplay of path dependent institutional forces rooted in the fortress discourse simply sticks to its guns maintaining the application of law enforcement as key management instruments in its approach to governance especially to local people interactions there is an apparent gap between rhetoric and reality in protected area governance

biodiversity and international stakes a question of access abstract this paper examines three main questions is it possible to create a market for genetic resources is it a perfectly or an imperfectly competitive market what impact could this market have on the management of biodiversity in the context of sustainable development i analyse the conditions for access and use of knowledge of genetic resources and the genetic resources themselves i then consider the consequences on the management of genetic resources and social welfare trends in the context of sustainable development i present product and technology transfers in terms of access and user rights i show that the lack of information on the quality of biological resources and on their value on both the demand and supply sides lead to an imperfect market model i examine how benefit sharing can be achieved via public research institutions in developed countries and the conditions of their access to private patent licences my main conclusion is that a valorisation of developing countries genetic resources is a means among others of accomplishing a sustainable management of biodiversity by an equitable access and benefit sharing from the use of biodiversity direct use of natural and biological resources valorisation of genetic resources development of new economic sectors etc furthermore it enables taking part in the economic and social development of these countries increasing the social welfare in a context of sustainable development by widening the access to genetic resources

interest rate ceilings and the role of security and collection remedies in loan contracts neela d manage collateral or other security for personal loans and restrictions on creditor remedies for the collection of debts have varying effects on the price and quantity of credit which depend in turn on the level of interest rate ceilings we report here on reduced form equations of a supply demand model estimated for five states with different interest rate restrictions interest rate ceilings limit how far lenders can raise loan rates to compensate for expected default losses but restrictions on collection remedies are generally associated with a higher interest rate i introduction the role of collateral in loan contracts has been the focus of many recent studies on credit markets this paper examines the role of collateral in personal loan contracts when government regulations such as usury laws and restrictions on late charges and wage garnishment limit the responses of creditors to increases in default risk special attention is given to the use of the borrower s future income as a form of collateral in personal loan markets and the effect of laws governing garnishment and wage assignment which limit the lender s claim to the borrower s income theoretical studies by barro 1976 benjamin 1978 and harris 1978 discuss the effects of collateral on the interest rate loan size and other features of the loan contract particularly when the collateral has a different value to the borrower and to the lender more recent studies by rea 1984 schwartz 1981 1984 hess 1985 eaton 1986 and hess and knoeber 1987 further analyze the role of collateral in loan contracts hess 1985 in particular evaluates the earlier work done by benjamin 1978 and develops an excellent analysis of the relation between collateral and other terms of the loan such as loan rates and loan size the regulations governing personal loan markets that have been most frequently analyzed are interest rate ceilings and restrictions on the remedies available to creditors attempting to collect on delinquent or defaulted accounts empirical studies by shay 19701 benston 1973 1977 greer 1973 1975 aho et al 1979 barth and yezer 1977 barth et al 1983 manage 1983 and peterson 1979 analyze several personal loan market relationships these studies differ widely in terms of scope type of data used with respect to both geographical coverage and level of aggregation model specification estimation technique and the specific hypothesis being tested this paper demonstrates that the effect of interest rate ceilings depends on the restrictions imposed by other financial regulations and visa versa and that the effect of regulation in turn depends on the specifics of the loan transaction both interest rate restrictions and a number of other factors affecting borrowing and lending decisions vary systematically by state first regulations governing loan contracts differ from state to state interest rate ceilings are set by each state and different laws govern the use of garnishment and wage assignment so that the amount of future income that may serve as collateral also varies creditors in different states thus operate under different rules second there are differences in the risk characteristics of borrowers due to demographic financial and institutional factors which affect the supply decisions of lenders in order to hold these factors constant this paper analyzes cross sections of loans made within a state rather than use a cross section of states this approach differs from previous studies in that it allows regression coefficients to vary across states ii collateral and government regulations collateral is used as an instrument to enforce loan contracts it provides an incentive to repay the loan because the borrower loses the collateral in the event of default theoretical studies generally suggest that a decrease in collateral will increase the costs to the lender of a default and increase the interest rate on the loan

allocation of goods by lottery i introduction many goods such as hunting permits oil drilling leases cellular telephone licenses and rights to fishing berths as well as some buds such as the military draft jury duty and who is to be thrown overboard on a sinking life raft are or have been allocated by lotteries in neo classical welfare economics the random distribution of property rights does not affect allocative efficiency as long as transferability is allowed and the transactions costs are non prohibitive lottery allocations however are generally not transferable thus lottery allocations are inefficient since the goods are not ultimately allocated to the users who value them the most a number of authors such as aubert 1959 fienberg 1971 eckhoff 1989 and elster 1989 36 122 have argued that lotteries are chosen as the allocative instrument because it represents a fair or just means of allocating the goods rawls 1971 374 and eckhoff 1989 have noted that where it is impractical to divide the goods equally among those who desire them a lottery serves to satisfy both the requirement that the process be fair and that the allocation problem be resolved relatively costlessly elster 1989 113 however notes that lotteries are not the only fair allocation mechanism for example he points out that in jewish ethics the problem of allocating an indivisible good such as life saving resources is resolved by denying it to everyone even economists would probably prefer a lottery to this resolution the fairness hypothesis has a rich history in the old testament lotteries are deemed a fair way of allocating goods such as the inheritance of land numbers 33 54 lotteries are also used to allocate bads in perhaps the most famous biblical example of use of lots jonah was chosen by lot to be sacrificed to appease god who had brought a storm that threatened to wreck the ship the story goes that the lot selected jonah because he was shirking his duties elsewhere and should not have even been on the vessel jonah 1 6 1 notice that fair here is taken to mean just given this theological foundation it is not surprising that the lottery has seen frequent use in legal history as well one of the most interesting cases occurred in swedish and finnish trials in the 17th and 18th centuries in cases where a man was murdered by a mob lotteries were used to allocate punishment since the law required an eye for an eye no more and no less eckhoff says that if it was impossible to ascertain which of them had dealt the mortal blow the courts determined that one of the responsible parties be sentenced to death and that the person be selected by lottery 1989 19 a similar use of lotteries occurs in military history to deal with cases of mass desertion in roman armies every tenth man was executed decimated and the remainder pardoned in more modern times the lottery has been used in u s law 2 first of course is the use of a lottery to decide who shall sit on a jury a connection between fairness and lotteries however has also appeared in the common law in an 1842 case u s v holmes which has been discussed by fienberg 1971 eckhoff 1989 and elster 1989 a ship sank in a heavy storm and the lone surviving life raft was in grave danger of sinking the crew threw overboard fourteen male passengers in an effort to save the rest when back in port after being rescued a crewman named holmes the only crew member who had not disappeared upon arrival to port was brought to trial for the deaths of the passengers the court ruled that the non essential members of the crew should have been thrown overboard before any passengers and if that was not sufficient then passengers should have been selected by lot which is the fairest mode elster 1989 65 the fact that a human life presumably a large cost was at stake ex post did not affect the decision 3 the environmental economics literature contains a number of references to the social preferences for and benefits of lottery allocations

a framework for evaluating collective action and informal institutional dynamics under a resource management policy of decentralization the decentralization of resource property rights has become an increasingly popular policy in many natural resource dependent communities of the developing world however the success of this policy approach depends on both collective action and institutionalization it is therefore important to evaluate collective action and institutionalization where the process of property rights decentralization is in progress this paper presents a modified version of the institutional analysis and development iad framework designed to analyze the decentralization of property rights and the collective action of community members to obtain these rights it describes a three phased framework for analyzing i the government property right decentralization policy ii the stock of capital assets in the community required to achieve property rights by initiating collective action and iii the development of an informal institution for effective property right distribution in the community finally to demonstrate its utility to collective action research we present a case study application of our modified framework to the fisheries property right decentralization policy of the bangladesh government and the subsequent collective action of a wetland dependent community

governance of the commons a role for the state the paper examines property regimes and common pool resources using examples and case studies the relative merits of private community and state based rights are detailed the insights from the case studies and an analysis of institution costs provide a tentative framework for understanding the role of the state in the governance of the commons

decommodification as a foundation for ecological economics ecological economists have emphasized the study of commodification i e the development of market based exchange and valuation rather than decommodification processes i e the degree of immunization from market dependency this is surprising given the fact that large scale decommodification may be our best option for a post growth transition so dear to many ecological economists based on heinsohn and steiger s theory of ownership we seek to provide an institutional foundation to processes of de commodification these two authors distinguish between property and possession two bundles of rights generating different logics and consequences we illustrate this approach with three cases taken from an advanced capitalist economy switzerland showing how commodification and decommodification processes may appear together or vigorously oppose each other cooperatives forests and municipal land are examples of partial decommodified assets that follow a logic of possession and are therefore more likely to be sustainable it is high time that the study of decommodification becomes central to ecological economics

the economical management of multispecies fisheries resource based theory implicitly assumes that property rights to resources are secure extant property rights theory enables us to relax this assumption to take into account processes where there are struggles in establishing property rights that enhance

a downward spiral research evidence on the relationship between poverty and natural resource degradation abstract many observers have conceptualised the link between rural poverty and environment as a downward spiral with population growth and economic marginalisation leading to environmental degradation recent micro scale empirical research challenges this model showing striking heterogeneity in environmental management by the rural poor their success in adapting to environmental change and the efficacy of policies in influencing outcomes local endowments conditions affecting the adoption of resource conserving technologies and local institutions supportive of the poor are key factors that condition poverty environment interactions and outcomes in relation to agriculture the main strategies to jointly address poverty and environmental improvement are to increase poor people s access to natural resources enhance the productivity of poor people s natural resource assets and involve local people in resolving public natural resource management concerns research is needed to support these strategies particularly to explore poverty environment agriculture interactions develop technologies for poor farmers and partner with local communities for action research on policies and programmes

estimating intergenerational distribution preferences resource management decisions influence not only the output of the economy but also the distribution of utility between groups within the community the theory of cost benefit analysis provides a means of incorporating distributional changes into the decision making calculus through the application of distributional or welfare weights however this practice has not been widely adopted in part due to difficulties in the estimation of distributional weights this paper addresses this problem by using the stated preference method of choice modelling to estimate distributional weights suitable for inclusion in a cost benefit analysis framework the findings of a choice modelling experiment designed to estimate community preferences with respect to intergenerational utility distribution illustrate the potential of this method in addressing distributional issues

empirical regularities in the poverty environment relationship of rural households evidence from zimbabwe abstract analysis of rural households and environmental resources is beset by inadequate data especially in africa using purpose collected panel data from zimbabwe we demonstrate seven empirical regularities in the rural poverty environment relationship most important environmental resources make a significant contribution to average rural incomes poorer households also depend heavily on these resources which contribute c 40 to their incomes richer households however use greater quantities of environmental resources in total finally considerable differentiation exists in the economic characteristics of environmental goods these results demonstrate the considerable economic significance of environmental resources to rural households surveys which ignore them miscalculate rural incomes and welfare

the effect of government regulations on personal loan markets a tobit estimation of a microeconomic model the purpose of this paper is to analyze both theoretically and empirically the effect of selected government regulations on a high risk personal loan market unlike previous studies which have generally relied on a loosely specified theory and then tested this theory with statewide aggregate data our analysis is based on a more tightly specified model for individual loans which is then tested using statewide disaggregated data the empirical results indicate that the regulatory effects are not only significant but consistent with our theoretical microeconomic model the purpose of this paper is to analyze the effect of selected government regulations on a high risk personal loan market this is done by developing a simple model of the supply of and demand for a single high risk personal loan and then using the model as the basis for our econometric analysis due to econometric problems related to the presence of legal rate ceilings on such loans we derive and estimate reduced form equations rather than structural equations however as will be shown the market effects of regulations may still be tested against a priori restrictions 1 the emphasis on individual loan transactions is a distinguishing feature of our study this permits a more accurate assessment of the consequences of regulation for personal loan markets than is possible using aggregate state data see for example greer 18 19 and benston 9 10 11 because regulatory constraints vary with the specific terms of the loan as well as individual borrower characteristics as examples legal rate ceilings typically vary with the amount loaned and the amount that may be garnished generally depends on each borrower s earnings in this type of setting lenders essentially act as multi product firms selling different loan amounts of varying terms to borrowers

forest dependence and income distribution in a subsistence economy evidence from india abstract we examine an area of northern india where forestry acts to ameliorate the incidence of poverty and destitution though it does not otherwise contribute significantly to the reduction of income inequality the poor would be doubly disadvantaged without common property access to forest products conservation measures entailing curtailment in the right to common access pose a dilemma this issue is explored here

property rights externalities and resource degradation locating the tragedy abstract resource degradation in the third world is largely driven by the demands of farm households for fuelwood and land for agriculture since resources are often controlled through indigenous systems of property the tragedy of the commons has been used to explain resource degradation as a result private property is suggested as a solution to resource degradation a dynamic model capable of examining household incentives for resource use under private and common property is developed results of the model reject the conventional wisdom that gives rise to the presumed optimality of private individual property in natural resources and the correlated indictment of group management regimes

the less volatile u s economy a bayesian investigation of timing breadth and potential explanations using a bayesian model comparison strategy we search for a volatility reduction in u s real gross domestic product gdp growth within the postwar sample we find that aggregate real gdp growth has been less volatile since the early 1980s and that this volatility reduction is concentrated in the cyclical component of real gdp sales and production growth in many of the components of real gdp display similar reductions in volatility suggesting the aggregate volatility reduction does not have a narrow source we also document structural breaks in inflation dynamics that occurred over a similar time frame as the gdp volatility reduction

property rights regimes and natural resources a conceptual analysis revisited summary more than two decades ago schlager and ostrom 1992 developed a conceptual schema for arraying property rights regimes that distinguishes among diverse bundles of rights the conceptual framework has profoundly influenced research on natural resource governance common property and community resource management however currently natural resource governance has changed dramatically challenging the applicability of the conceptual schema there are now many more social actors involved in resource management than the local communities at the focus of original analysis additionally resource management increasingly provides access to various kinds of benefits from outside the immediate context including indirect benefits such as payments for environmental services and results based payments for redd these changes demand addition of new property rights to the original framework this paper updates the conceptual schema in reaction to changes in natural resource governance proposing three specific modifications on the focus of use rights control rights and authoritative rights to come up with a framework that distinguishes eight types of property rights we apply the framework to three purposefully selected governance interventions in china and laos that include the provision of indirect benefits in addition to the direct benefits derived by local people from natural resources the empirical application shows how contemporary governance changes may not lead to local people s outright dispossession since they continue to possess direct use rights to natural resources however local people may be excluded from control and authoritative rights which are exercised exclusively by state agencies and international actors the latter make available indirect benefits to local people which may or may not translate into use rights in the sense of policy based entitlements the empirical insights suggest the possibility of a wider trend of compensated exclusions in natural resource governance

institutions and environmental governance a reconceptualization abstract this article presents the conceptual revisions needed to extend the new institutional approach to environmental governance from its current local and international domains of application to all governance solutions including national environmental and natural resource use policies and multi level governance solutions that are increasingly used to address global environmental change the article suggests that environmental governance is best understood as the establishment reaffirmation or change of institutions to resolve conflicts over environmental resources it also explains why the choice of these institutions is a matter of social justice rather than of efficiency the article suggests a way to understand formal and state centered governance solutions as forms of collective ownership not unlike common property the article demonstrates how institutional analysis can gain resolution by looking at the functional and structural tiers organization of governance functions and formulation of key institutional rules as key aspects of the design of governance institutions

property rights to multi attribute fishery resources abstract the united nations code of conduct for responsible fisheries urges governments to manage multiple yield bycatch and habitat attributes of fishery resources the information and enforcement costs of multi attribute management are high however as a result relatively few attributes generally stock biomass age structure and growth are specified in yield targets exposing others e g localized abundance sex to excessive use in the public domain spillovers caused by fishing gear e g gear conflicts bycatch habitat damage generally are regulated with catch limits and area closures that artificially divide or exclude activities which interact due to attribute jointness total fishery income is compromised because tradeoffs are not evaluated at the margin alternative arrangements that bundle fishery resource attributes are suggested bundled property rights could evolve from a comprehensive assignment of usufruct rights which reduce the transaction costs of gathering information on unspecified attributes and of contracting for spillovers markets for harvest rights could resolve the simpler gear conflict and bycatch problems other interactions e g predation habitat requirements would require corporate or collective property rights and governance arrangements that make harvesters and other interested parties the residual claimants of their harvest decisions subject to government restrictions that protect public goods

northwest coast indigenous institutions that supported resilience and sustainability abstract indians of the northwest coast of north america had cultural continuity for at least two millennia before contact with people from the old world this archeological fact suggests that their societies had achieved sustainability and resilience in relationships to their ecosystems and the salmon runs the governance principles used by northwest indians in managing fisheries and other resources provided resilience in addition to a land ethic these principles included exchange systems based on public reciprocity property rights were clear and trespass was a capital offense chiefs and titleholders had to be generous facilitators leadership authority over land was contingent upon adherence to ethical and generous behavior as well as good management these indigenous institutions were quite different from the rules currently governing the management of most ecosystems in critiquing current institutions many ideas similar to those in the indigenous systems have been proposed in isolation the example described in this paper suggests the importance of combining them

development aid and climate finance this paper discusses the implications of climate change for official transfers from rich countries the north to poor countries the south when the motivation for transfers is ethical rather than strategic traditional development transfers to increase income and reduce poverty are complemented by new financial flows to reduce greenhouse gas emissions mitigation transfers and become climate resilient adaptation transfers we find that in the absence of barriers to adaptation mitigation or development climate change will make isolated transfers less efficient a large part of their intended effect to increase income reduce emissions or boost climate resilience dissipates as the south reallocates its own resources to achieve the mitigation adaptation and consumption balance it prefers only in the case of least developed countries which are unable to adapt fully due to income constraints will adaptation support lead to more climate resilience in all other cases if the north wishes to change the balance between mitigation adaptation and consumption it should structure its transfers as matching grants which are tied to the south s own level of funding alternatively the north could provide an integrated climate compatible development package that recognizes the combined climate and development requirements of the south if the aim is to increase both mitigation and adaptation in the south development assistance that increases the income level can be an effective measure but only if there is an international agreement and the recipient country is not income constrained if the recipient country is very poor development aid may reduce adaptation effort

poverty and environmental degradation a review and analysis of the nexus abstract there is much controversy surrounding the poverty environmental degradation nexus the predominant school of thought argues that poverty is a major cause of environmental degradation and if policy makers want to address environmental issues then they must first address the poverty problem another school of thought argues that a direct link between poverty and environmental degradation is too simplistic and the nexus is governed by a complex web of factors in this paper a formal structure for analyzing the complex web of factors is formulated and used to review the existing literature on the links between poverty and the degradation of four natural resource sectors the analysis highlights the important role institutional and market failure in encouraging agents from various income groups to exhibit unsustainable activities which in turn forces some of the agents to fall into poverty another important factor is the role of conflicts between different agents income groups in the povertyenvironmental degradation nexus the analysis also highlights the presence of feedback loops between environmental degradation and poverty

institutional ecological economics abstract new institutional economics and its forerunners have we argue made important contributions to the evolving agenda of ecological economics the conceptualisation of environmental problems as instances of interdependence and the acknowledgement of positive transaction costs are key insights into the nature of environmental problems we also discuss how plurality of behavioural motivations and limited cognitive capacity have important implications for environmental decision making and its analysis we show how evolutionary and collective action theories offer complementary takes on the choice and change of environmental governance institutions and how the concept of social capital can enrich analyses of environmental governance we conclude that an emerging institutional ecological economics has the greatest relative advantage in analysing the design implementation and effectiveness of environmental governance solutions

poverty policies and deforestation the case of mexico this study examines the determinants and policy implications of deforestation in mexico and includes a brief review of the relevant empirical literature and a description of the theoretical model land use patterns and socioeconomic and physiogeographic factors are determinants data were obtained from digital maps of land use and soils and the 1990 population and 1991 agricultural censuses a simple 2 period equation formalizes the relationship between deforestation and poverty government policies and local land tenure in period 1 representative producers in municipalities have 4 options in allocating labor time wage generation agricultural production deforestation on land without clear property rights and investment in technology during period 2 the options are to farm on available land and deforested areas or work in the wage sector findings reveal that 1 communal land tenure ownership by the ejido did not increase deforestation 2 pricing that favors maize production which is very land intensive increased deforestation and technical assistance reduced deforestation and 3 poverty was related to higher rates of deforestation prices were the most important immediate factor in unsustainable resource use but other factors had an impact the government policy mix did not support sustainable development reduced subsidies would benefit the environment the government should provide safety nets to increase the level of rural investment and reduce poverty and should improve land productivity with technical inputs trade liberalization and elimination of subsidies should be sensitive to the poors need for real wages

environmental degradation and economic openness in ldcs the poverty linkage the connection between growth economic policies and the environment in developing countries has become a primary concern for economists and policy makers this is because of the fact that environmental degradation in the third world has accelerated dramatically over the last few decades deforestation biomass degradation and air emissions in developing countries are now a serious concern for the industrialized world the world ecological system has been able to tolerate well the almost total elimination of natural forests and biomass as well as the massive generation of air and water pollution by the developed countries but it is not clear that a duplication of this process in the developing world would not induce radical changes could imply significant costs in terms of human lives public health and other investments in the industrialized countries 18 refs

on the sustainability of common property resources abstract we provide a model where a common property resource is managed by two types of agents cooperators and non cooperators who adjust their extraction strategies in response to persistent differential payoffs in our model the social approval of cooperators works as a reward mechanism which as we show favors both the pervasiveness of cooperative behavior and the sustainable management of natural resources specifically we show that in the presence of such a reward mechanism a stable equilibrium can be reached with both strategies being practiced simultaneously and a decentralized and sustainable management of common property resources is possible

influences of transaction costs in environmental policy abstract there is a growing literature reporting the extent of transaction costs for environmental policies however understanding why transaction costs occur and why they are small or large is also important for efficient policy selection and evaluation following an analysis of the organisational economics literature and reports of the extent of transaction costs for a number of environmental policies three key influences to transaction costs in environmental policies are identified these are the following 1 the characteristics of the transaction for the environmental good 2 the nature of the transactors and 3 the current institutional environment and arrangements these affect transaction costs to the government and all other parties influenced by a policy transaction costs occur due to actions of information collection and policy design policy enactment and establishment implementation and contracting administration and monitoring and enforcement an interrogation of transaction cost influences reveals that 1 the influence varies between parties and is affected by the actions and interactions of and between all parties to a policy 2 how transaction costs are experienced varies across time and 3 who experiences transaction costs depends on the policy itself future policy selection and refinement will benefit from empirical analysis of the causes of transaction costs

ownership access and sequential investment we extend the property rights framework to allow for a separation of the ownership rights of access and veto and sequential investment parties investing first ex ante do so before contracting is possible parties that invest second ex post can contract on at least some of their investment costs along with this cost sharing effect the incentive to invest is affected by a strategic effect generated by sequential investment together these effects can overturn some of the predictions of the property rights literature for example the most inclusive ownership structure might not be optimal even if all investments are complementary

an analysis of the impact of interest rate ceilings the first aim of this study is to estimate the interest rates paid for motor vehicle loans the second aim is to identify those potential borrowers most likely to be rationed out of the market by the imposition of rate ceilings rate ceilings constrain the rates paid by successful loan applicants to be no greater than the applicable ceiling level these constraints are dealt with by treating the interest rate paid as a variable truncated at the ceiling level assuming the dependent variable is truncated normal consistent estimates are obtained by employing the maximum likelihood method of hausman and wise

an endogenous growth model for the evolution of water rights systems this article presents a model to help explain the transition path from one water management system to another typically a commons framework to one of tradable permit based property rights furthermore drawing from transaction cost literature the model demonstrates how this takes place when externalities the strain on water resources become severe enough to warrant the increased transaction costs inherent with more complex water rights management frameworks

the environment and emerging development issues development economics for the most part has failed to recognize renewable environmental resources as economic goods yet the lives of the poor in developing countries are intimately tied to the fate of their local common property resources soil fuel wood water and so on ignoring the loss of common property renewable resources via degradation centralization or privatization in calculations of net national product can mask the destruction of resources available to a country s poor behind the false appearance of a growing national economy this paper describes the difference between the problem of managing local common property resources in developing countries and the problem of protecting the global commons such as the atmosphere and oceans it outlines the calculations that would include the local commons in the national income accounting of capital assets and argues that the interests of those most dependent on the increasingly scarce local commons will be best served by placing control in their hands while the central government provides infrastructure and educational support to control the pollution of the global commons on the other hand the paper sketches a plan in which most countries would have a high incentive to participate a global allocation of limited tradable permits to discharge defined pollutants

does the allocation of property rights matter in the commons abstract a popular solution to the tragedy of the commons is to create private property rights to access the commons if resource users care about the welfare of others they may be unwilling to respect property rights regimes that lead to unfair or inequitable outcomes we explore in a series of laboratory experiments whether it is possible to undermine the efficacy of property rights solutions through the allocation process we find that both the extent to which property rights are enforced and how they are allocated significantly affect extraction and compliance our findings suggest that one of the most popular allocation methods is suboptimal we observe that occasional enforcement and the proportional allocation of property rights is dominated by no enforcement and the equal or inverse allocation of property rights our results support the view that allocation matters for property rights solutions to the commons problem

us business credit sources demand deposits and the missing money abstract this study accounts for much of the missing money in the us through compensating balances business lending by banks affects demand deposit growth standard money demand models include variables that likely pick up income and interest rate effects on the transactions demand for demand deposits and on compensating balance requirements provided that bank lending to firms is stable however during the missing money period business shifted toward nonbank sources of short term credit causing a decline in compensating balances empirical finding support this hypothesis as a partial explanation for the missing money using the federal reserve board s demand deposit model

land ownership and conflicts over the use of resources implication for household vulnerability in eastern ethiopia abstract survey data from hirna watershed in eastern ethiopia were used to identify determinants of household choice among alternative land property right regimes to help mitigate negative consequences of scarcity induced land related conflicts and so as to help reduce household vulnerability it has been observed that absence of clearly defined property right and management plan has led to overexploitation of the hillsides leading to perpetuation of poverty and food insecurity multinomial discrete choice models were specified and estimated for explaining decision of household heads for most preferred property right regimes overall two variables namely the dependency ratio and the level of education of the household head provided the most predictive power whether or not the household prefers common property resource regime whereas the number of household members the livestock holding of the household and the area of cultivated land lost due to enclosure of part of the watershed were found to be more relevant in determining household s preference for resettlement to other potential areas on the other hand the age of household head the number of household members and the level of education of the household head were found to be statistically significant in determining the likelihood that a household prefers intensifying agriculture

another look at long run money demand abstract this paper investigates the long run demand for m1 in the postwar united states previous studies based on data ending in the late 1980s are inconclusive about the parameters of postwar money demand this paper obtains precise estimates of these parameters by extending the data through 1996 the income elasticity of money demand is approximately 0 5 and the interest semi elasticity is approximately 0 05 these parameters are significantly smaller in absolute value than the corresponding parameters for the prewar period a caveat is that the analysis assumes there is no trend in money demand resulting from technological change

the search for a stable money demand function a survey of the post 1973 literature phe question of whether the demnand function for money is stable is one of the most important recurring issues in the theory and application of macroeconomic policy what is being sought in a stable demand function is a set of necessary conditions for money to exert a predictable influence on the economy so that the central bank s control of the money supply can be a useful instrument of economic policy as such the notion of a stable demand function appears to involve three key elements e g john t boorman 1976 p 317 and david e w laidler 1977 pp 34 35 first the demand for money relation should be highly predictable in a statistical sense as measured by the usual goodness of fit statistics precision of estimated coefficients and presumably its ability to forecast accurately out of sample second a stable demand function for money has relatively few arguments a relationship that requires knowledge about a large number of variables in order to pin it down is in effect not predictable finally the variables that appear as arguments in the function should represent significant links to spending and economic activity in the real sector in sum a stable demand function for money means that the quantity of money is predictably related to a small set of key variables linking money to the real sector of the economy the importance of a stable money demand function for monetary policy can be illustrated with the standard is lm model in which interest rates and gnp are the endogenous variables in this context a stable demand function for money translates into a well defined relationship between money interest rates and gnp

the impact of mortgage activity on recent demand deposit growth abstract this study quantifies the substantial effects of mortgage activity on recent demand deposit growth and finds that estimates and forecasts of recent demand deposit growth are considerably more accurate using data adjusted for mortgage activity

the population problem theory and evidence this study is concerned with the relationships among population growth poverty and environmental degradation with particular focus on the situation in developing countries the author rejects the concept of a general theory of fertility behavior in favor of an interpretation of these relationships which might be applicable to certain situations in the poorest parts of the indian subcontinent and sub saharan africa such situations include unacceptable risks of maternal death for poor illiterate women and a condemnation to extreme poverty in conditions of the deterioration of local resources and of the environment the author concludes that population growth rates are too high in certain specific areas and that an appropriate policy reaction to such conditions would be to try to change the options that men and women face so that their reasoned choice would be to lower their fertility

property rights regimes in complex fishery management systems a choice experiment application the tonle sap wetland fishery was previously divided into 3 different management zones for conservation open access fishing and private fishing rights to the private fishing zone involved auctions for exclusive rights to temporarily designated plots this paper aims to explore the auction based system by investigating how this fishery management system affects different groups of small scale fishermen and how different characteristics of the fishing lots affect the bidding a choice experiment approach was used to model fishermen s choices in a hypothetical auction market by offering fishermen the choice between purchasing different potential fishing lots and a no purchase option implying fishing only in the communal fishing grounds the preferred latent class model with two segments of fishermen showed that the bidding behavior of the more privileged group out competes the other group irrespective of the lot characteristics this result suggests that it is unlikely that the redesign of the auction system itself would be an effective way of securing access to fishing resources for the two observed groups of fishermen this implies that open access fishing grounds and or other regulations may also be needed in future management as they serve an important role for the poorer segments

community enforcement of fisheries effort restrictions abstract this paper models the use of community sanctions to restrict effort in a simple gordon schaefer style model of the fishery with heterogeneous fishing costs the withdrawal of cooperation in other areas of life is used to both restrict effort and to sanction those who continue to cooperate with those who have not restricted effort coalition proof nash equilibria are generated by a combination of sanctions discouraging the defection of small groups and stock reductions discouraging noncooperation by large groups both entry restrictions and individual quotas can be supported by community sanctions under some parameter combinations however there are cases where each can generate lower total rents than would be available under open access relatively low cost fishers are more likely to support entry restrictions and ignore community attempts to restrict individual effort while high cost fishers are more likely to support quotas

monetary policy lessons of recent inflation and disinflation by 1975 most economists agreed that the money demand function in the united states was reasonably stable and could serve as a reliable basis for the formulation of monetary policy those suspicious of monetarism were on the defensive in the light of the apparently inexorable increase of m1 velocity of about three percent per year with deviations of only a few tenths of a percent experience with rising money growth and rising inflation through 1980 only confirmed monetarist views as figure 1 shows all this had changed by 1986 with disinflation in the 1980s m1 velocity departed convincingly from its 1953 79 trend the money demand function seems to have fallen apart and is apparently not a reliable basis for monetary policy after all consequently the first major section following this introduction is devoted to the decline of velocity after 1981 and the demise of the standard money demand function some authors including i believe benjamin friedman conclude that this evidence leaves us so uncertain about the nature of money demand that policymakers cannot rely at all on any presumed money demand regularities in contrast my working hypothesis is that the money demand continues to be a stable function of relatively few variables but that the interest elasticity of money demand is substantially higher than previously thought others have sought money demand explanations in terms of regime shifts but that literature will not be discussed here events have not been kind to keynesian monetary policy positions either keynesians tend to concentrate on interest rates especially real interest rates as the best guide to the effects of monetary policy on the economy the real rate is discussed

property rights regimes and natural resources a conceptual analysis the term common property resource is an example of a term repeatedly used to refer to property owned by a government or by no one it is also used for property owned by a community of resource users such usage leads to confusion in scientific study and policy analysis in this paper we develop a conceptual schema for arraying property rights regimes that distinguishes among diverse bundles of rights ranging from authorized user to claimant to proprietor and to owner we apply this conceptual schema to analyze findings from a variety of empirical settings including the maine lobster industry

benefit sharing among local resource users the role of property rights skewed distributions of benefits from natural resources can fuel social exclusion and conflict threatening sustainability this paper analyzes how user group property rights to harvest forest products affect the distribution of benefits from those products within user groups we argue that groups with recognized harvesting rights share benefits more equally among group members than groups without such rights we test this argument with data from 350 forest user groups in 14 developing countries our results suggest that securing harvesting rights for local user groups can contribute to more equal benefit sharing especially in ethnically homogenous groups

estimating long run economic equilibria with stochastic trends an asymptotic theory is provided to analyze a menu of currently existing estimators of cointegrated systems we study in detail the single equation ecm seecm approach of hendry our theoretical results lead to prescriptions for empirical work such as specifying seecm s nonlinearly and including lagged equilibrium relationships rather than lagged differences of the dependent variable as covariates simulations support these prescriptions and point to problems of overfitting not encountered in the semiparametric approach of phillips and hansen 1990