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Karp-Rezai2021_Article_TradeAndResourceSustainability.pdf

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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/96091 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/96091 http://eprints.org/relation/issmallThumbnailVersionOf https://pure.iiasa.ac.at/id/document/96091 archive 353 disk0/00/01/76/39 2021-11-12 07:41:21 2021-11-12 07:41:21 2021-11-12 07:41:21 article show Karp L. Rezai A. 8648 pub ASA SYRR POPJUS EQU Asset pricing; Endogenous property rights; Markov perfection; Open-access resource; Overlapping generations; Policy complements; Sequential game; Trade Trade changes incentives to protect an open-access natural resource independently of its effect on the resource price. General equilibrium linkages cause resource policy to affect the price of privately owned assets regardless of whether they are used in the resource sector. In the closed economy, the asset market in our overlapping generations setting creates incentives for currently living agents to protect the natural resource. The interplay of the asset market and general equilibrium effects causes trade to reverse these incentives. Trade liberalization and the establishment of formal property rights are policy complements: the former makes the latter more important. 2021-11 published Springer 10.1007/s13235-021-00400-4 248 public Dynamic Games and Applications TRUE 2153-0793 no info:eu-repo/semantics/article