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Open Access Versus Restricted Access in a General Equilibrium with Mobile Capital

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Listed:
  • Ronan Congar

    (Université de Rouen Normandie et Normandie Université)

  • Louis Hotte

    (University of Ottawa)

Abstract

Open Access versus Restricted Access in a General Equilibrium with Mobile Capital We consider an economy with two sectors, resource and manufacturing, in a general-equilibrium setting. Two property regimes in the resource sector are compared, open access versus restricted access, with both labor and capital mobility. We first contribute by deriving the multi-factor demand conditions under open access. We provide necessary and sufficient conditions for a factor to gain from a property regime change. Redistributive effects depend crucially on relative factor intensities. Contrary to common wisdom, labor may gain from being “expelled” from the resource sector following privatization.

Suggested Citation

  • Ronan Congar & Louis Hotte, 2021. "Open Access Versus Restricted Access in a General Equilibrium with Mobile Capital," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(3), pages 521-544, March.
    • Handle: RePEc:kap:enreec:v:78:y:2021:i:3:d:10.1007_s10640-021-00542-4
    DOI: 10.1007/s10640-021-00542-4
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    References listed on IDEAS

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    More about this item

    Keywords

    Property rights; Natural resources; Open access; General equilibrium; Mobile capital; Factor payments; Factor intensities; Income distribution;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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