Resource extraction and the threat of possible expropriation: The role of Swiss bank accounts

Konrad, Kai A.; Olsen, Trond E. und Schöb, Ronnie (1994): Resource extraction and the threat of possible expropriation: The role of Swiss bank accounts. In: Journal of Environmental Economics and Management, Vol. 26, No. 2: pp. 149-162

Abstract

This paper examines the consequences of resource owners being threatened with possible nationalization / expropriation. If shows that Long′s [J. Econom. Theory10, 42-53, 1975] overextraction result critically depends on availability of a relatively safer investment alternative. If all investment alternatives are similiarly uncertain, then resource extraction is efficient, but the overall savings-consumption decision is distorted toward consumption.

• Item Type: Journal article
• Form of publication: Publisher's Version
• Faculties: Economics > Chairs > MPI for Tax Law and Public Finance
• Subjects: 300 Social sciences > 330 Economics
• ISSN: 0095-0696
• Language: English