haku: @indexterm time consistency / yhteensä: 10
viite: 4 / 10
| Tekijä: | Gulati, S. Vercammen, J. |
| Otsikko: | Time inconsistent resource conservation contracts |
| Lehti: | Journal of Environmental Economics and Management
2006 : VOL. 52:1, p. 454-468 |
| Asiasana: | conservation contracts resources time consistency |
| Kieli: | eng |
| Tiivistelmä: | This paper develops a model embodying realistic characteristics of resource contracts. It is found that resource contracts that share these characteristics are economically inefficient, which is due to the time-inconsistency inherent in the contracts. The first way to overcome this is to employ a sufficiently large penalty for early termination of the contract. The second method is to offer an upward sloping conservation payment schedule so far overlooked by policy makers. Under this payment schedule, the agent's ex ante and ex post contract choices coincide, social externalities are fully internalized, and the contractual outcome is economically efficient even in the absence of a penalty for early termination. |
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