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An endogenous growth model for the evolution of water rights systems
Author(s) -
Costa Lawrence W.
Publication year - 2015
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/agec.12163
Subject(s) - transaction cost , property rights , warrant , externality , commons , microeconomics , economics , path dependence , database transaction , path (computing) , law and economics , industrial organization , business , public economics , computer science , law , political science , programming language , financial economics
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.