IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v56y2013i1p131-139.html
   My bibliography  Save this article

Resource Rights and Markets in a General Equilibrium Model of Production

Author

Listed:
  • Henry Thompson

Abstract

Rights to a free resource lead to distributional deadweight losses in partial equilibrium. The present paper examines related distortions in a general equilibrium model of production with output prices constant for the small open economy. The free resource can result in lower output than a market with weak substitution in the other sector. The free resource also leads to a convex production frontier implying a price increase lowers output in the sector. Regarding policy, an import tariff, export subsidy, or price support would lower sector output. These general equilibrium distortions increase the incentives to favor resource markets over rights. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • Henry Thompson, 2013. "Resource Rights and Markets in a General Equilibrium Model of Production," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(1), pages 131-139, September.
    • Handle: RePEc:kap:enreec:v:56:y:2013:i:1:p:131-139
    DOI: 10.1007/s10640-013-9656-9
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10640-013-9656-9
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10640-013-9656-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Harry G. Johnson & Peter Mieszkowski, 1970. "The Effects of Unionization on the Distribution of Income: A General Equilibrium Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(4), pages 539-561.
    2. Henry Thompson, 2010. "The Stolper-Samuelson Box," Chapters, in: Mark Blaug & Peter Lloyd (ed.), Famous Figures and Diagrams in Economics, chapter 40, Edward Elgar Publishing.
    3. Bhagwati, Jagdish N. & Srinivasan, T. N., 1971. "The theory of wage differentials: Production response and factor price equalisation," Journal of International Economics, Elsevier, vol. 1(1), pages 19-35, February.
    4. Wolfgang F. Stolper & Paul A. Samuelson, 1941. "Protection and Real Wages," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 9(1), pages 58-73.
    5. Stephen P. Magee, 1971. "Factor Market Distortions, Production, Distribution, and the Pure Theory of International Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 85(4), pages 623-643.
    6. Ben Groom & Tim Swanson, 2003. "Missing Markets and Redundant Reservoirs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(1), pages 125-144, September.
    7. Deacon, Robert T, 1994. "Incomplete Ownership, Rent Dissipation, and the Return to Related Investments," Economic Inquiry, Western Economic Association International, vol. 32(4), pages 655-683, October.
    8. David Zilberman & Neal Macdougall & Farhed Shah, 1994. "Changes In Water Allocation Mechanisms For California Agriculture," Contemporary Economic Policy, Western Economic Association International, vol. 12(1), pages 122-133, January.
    9. Jones, Ronald W, 1971. "Distortions in Factor Markets and the General Equilibrium Model of Production," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 437-459, May-June.
    10. Burness, H Stuart & Quirk, James P, 1979. "Appropriative Water Rights and the Efficient Allocation of Resources," American Economic Review, American Economic Association, vol. 69(1), pages 25-37, March.
    11. Bill Provencher & Oscar Burt, 1994. "A Private Property Rights Regime for the Commons: The Case for Groundwater," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 875-888.
    12. Jones, Ronald W. & Easton, Stephen T., 1983. "Factor intensities and factor substitution in general equilibrium," Journal of International Economics, Elsevier, vol. 15(1-2), pages 65-99, August.
    13. Henry Thompson, 1985. "Complementarity in a Simple General Equilibrium Production Model," Canadian Journal of Economics, Canadian Economics Association, vol. 18(3), pages 616-621, August.
    14. Anderson, Terry L & Johnson, Ronald N, 1986. "The Problem of Instream Flows," Economic Inquiry, Western Economic Association International, vol. 24(4), pages 535-554, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. José-María Da-Rocha & Jaume Sempere, 2017. "ITQs, Firm Dynamics and Wealth Distribution: Does Full Tradability Increase Inequality?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 249-273, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thompson, Alexi & Thompson, Henry, 2021. "The imputed effect of US tariffs on wages," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 191-197.
    2. Henry Thompson, 2016. "Tariffs and Wages in Trade Theory," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 399-405, May.
    3. Kim, Hyeongwoo & Thompson, Henry, 2014. "Wages in a factor proportions model with energy input," Economic Modelling, Elsevier, vol. 36(C), pages 495-501.
    4. Stephen Devadoss & Wongun Song, 2003. "Oligopsonistic Intermediate Input and Patterns of Trade," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 77-97.
    5. Henry Thompson, 2010. "Energy Substitution, Production, and Trade in the US," Auburn Economics Working Paper Series auwp2010-06, Department of Economics, Auburn University.
    6. Thompson, Henry, 2014. "An energy factor proportions model of the US economy," Energy Economics, Elsevier, vol. 43(C), pages 1-5.
    7. Weber, Marian L., 2001. "Markets for Water Rights under Environmental Constraints," Journal of Environmental Economics and Management, Elsevier, vol. 42(1), pages 53-64, July.
    8. Hikari Ban, 2010. "Factor Substitution and Relative Factor Prices," Review of International Economics, Wiley Blackwell, vol. 18(3), pages 562-573, August.
    9. M. Ali Khan, 2007. "The Harris-Todaro Hypothesis," Labor Economics Working Papers 22206, East Asian Bureau of Economic Research.
    10. Eden S. H. Yu & Chi‐Chur Chao, 2021. "Appropriation, firm dynamics, and wage inequality," International Journal of Economic Theory, The International Society for Economic Theory, vol. 17(1), pages 118-129, March.
    11. Phoebe Koundouri, 2004. "Current Issues in the Economics of Groundwater Resource Management," Journal of Economic Surveys, Wiley Blackwell, vol. 18(5), pages 703-740, December.
    12. Vassilis Rapanos, 2006. "Tax Incidence in a Model with Efficiency Wages and Unemployment," International Economic Journal, Taylor & Francis Journals, vol. 20(4), pages 477-494.
    13. Dasgupta, Indro & Osang, Thomas, 2002. "Globalization and relative wages: further evidence from U.S. manufacturing industries," International Review of Economics & Finance, Elsevier, vol. 11(1), pages 1-16, April.
    14. Yu Sheng & Xinpeng Xu, 2010. "Trade theorems with search unemployment," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(3), pages 795-815, August.
    15. Arvind Panagariya, 2003. "Trade Openness: Consequences for the Elasticity of Demand for Labor and Wage Outcomes," International Trade 0308007, University Library of Munich, Germany.
    16. Huizinga, H.P., 1995. "International trade and migration in the presence of sector-specific labor quality pricing distortions," Other publications TiSEM 7c54ef36-2f2f-4bdf-850e-6, Tilburg University, School of Economics and Management.
    17. Yoshiaki Nakada, 2018. "Factor endowment--commodity output relationships in a three-factor two-good general equilibrium trade model: Further analysis," Papers 1805.06129, arXiv.org, revised Oct 2018.
    18. Lars Gårn Hansen & Frank Jensen & Eirik S. Amundsen, 2014. "Regulating Groundwater Use in Developing Countries: A Feasible Instrument for Public Intervention," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 170(2), pages 317-335, June.
    19. Henry Thompson, 1994. "Do oil tariffs lower wages?," Open Economies Review, Springer, vol. 5(2), pages 191-202, March.
    20. Paulo Bastos & Udo Kreickemeier, 2017. "Unions, Competition, and International Trade in General Equilibrium," World Scientific Book Chapters, in: International Trade and Labor Markets Welfare, Inequality and Unemployment, chapter 6, pages 143-172, World Scientific Publishing Co. Pte. Ltd..

    More about this item

    Keywords

    Free resource; Water rights; General equilibrium; Q20; Q30; D50;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:56:y:2013:i:1:p:131-139. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.