Private Property and Economic Efficiency: A Study of a Common‐Pool Resource
Citations Over TimeTop 1% of 2000 papers
Abstract
The British Columbia halibut fishery provides a natural experiment of the effects of ''privatizing the commons.'' Using firm-level data from the fishery 2 years before private harvesting rights were introduced, the year they were implemented, and 3 years afterward, a stochastic frontier is estimated to test for changes in technical, allocative, and economic efficiency. The study indicates that (1) the short-run efficiency gains from privatization may take several years to materialize and can be compromised by restrictions on transferability, duration, and divisibility of the property right; (2) substantial long-run gains in efficiency can be jeopardized by preexisting regulations and the bundling of the property right to the capital stock; and (3) the gains from privatization are not just in terms of cost efficiency but include important benefits in revenue and product form.
Related Papers
- → Economic Efficiency in Organic Farming: Evidence from Cotton Farms in Viotia, Greece(2001)65 cited
- → A Test for Relative Efficiency of Farmers Cultivating Groundnut in Tamil Nadu: A Profit Function Approach(2013)
- The Development of Efficiency Theory and The Government's Microeconomic Role(2003)
- Estimating Economic Efficiency in Paddy Farms: A Caseof Northwest Selangor IADP(1996)
- → Economic Efficiency(2022)