Natural Resources, Properties Rights and Development. The objective of this research line is to characterize policies leading to optimal allocation of resources between alternative activities. We use general equilibrium models and numerical techniques to describe the economy and characterize the reaction of agents to policies. Two different issues are currently under study. Firstly, we study the growth pattern in economies in which a non-renewable natural resource is an essential input in the technology used in the production sector. Previous research has shown that any active R&D policy increases the growth rate of the economy when infinitely lived agents models are considered. Our objective is to see if this result also appears in economies described by an endogenous growth model with finite lifetime agents. Secondly, we analyze the effects of privatizing a renewable common resource from the point of view of the sustainability of competitive equilibrium.
Researcher: Steve Cassou, José María Da Rocha, Arantza Gorostiaga, María José Gutiérrez and Amaia Iza
Recent Papers related to this line of research:
Cassou S.P., A. Gorostiaga, M.J. Gutiérrez and S. Hamilton, (2010) “Second-best Tax Policy and Natural Resource Management in Growing Economies”, International Tax and Public Finance 17(6), 607-626.
Gutiérrez M.J., (2008) “Dynamic Inefficiency in an Overlapping Generation Economy with Pollution and Health Costs”, Journal of Public Economic Theory, 10(4), 563-594.Agnani B., M.J. Gutiérrez and A. Iza, (2005) “Growth in Overlapping Generation Economies with Non-Renewable Resources", Journal of Environmental Economics and Management, 50(2), 347-407.