The Value of Secure Property Rights: Evidence from Global Fisheries / Corbett A. Grainger, Christopher Costello.

Format:

Book

Author/Creator:

Grainger, Corbett A.

Contributor:

National Bureau of Economic Research.

Costello, Christopher.

Series:

Working Paper Series (National Bureau of Economic Research) no. w17019.

NBER working paper series no. w17019

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

The Value of Secure Property Rights

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2011.

Summary:

Property rights are commonly touted as a solution to common pool resource problems. But in practice the security of these property rights varies substantially owing to differences in design. In fisheries, the design of individual transferable quotas (ITQs) varies widely; the consequences of these design differences on economic outcomes has not been studied. To test whether the security of these property rights affects asset values, we compile a unique dataset to examine the relationship between the exclusivity of property rights and the dividend price ratios for ITQs. We find evidence that stronger property rights lead to higher asset values and lower dividend price ratios in ITQ fisheries. This pecuniary effect of property rights security informs the current policy debate on the design of property rights institutions for managing natural resources.

Notes:

Print version record

May 2011.