EconStor >
Yale University >
Economic Growth Center (EGC), Yale University >
Center Discussion Papers, Economic Growth Center (EGC), Yale University >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/26999
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorEngel, Eduardo M. R. A.en_US
dc.contributor.authorFischer, Ronald D.en_US
dc.date.accessioned2009-08-06T09:44:42Z-
dc.date.available2009-08-06T09:44:42Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/26999-
dc.description.abstractThe government contracts with a foreign firm to extract a natural resource that requires an upfront investment and which faces price uncertainty. In states where profits are high, there is a likelihood of expropriation, which generates a social cost that increases with the expropriated value. In this environment, the planner’s optimal contract avoids states with high probability of expropriation. The contract can be implemented via a competitive auction with reasonable informational requirements. The bidding variable is a cap on the present value of discounted revenues, and the firm with the lowest bid wins the contract. The basic framework is extended to incorporate government subsidies, unenforceable investment effort and political moral hazard, and the general thrust of the results described above is preserved.en_US
dc.language.isoengen_US
dc.publisherYale Univ., Economic Growth Center New Haven, Conn.en_US
dc.relation.ispartofseriesCenter discussion paper // Economic Growth Center 960en_US
dc.subject.jelQ33en_US
dc.subject.ddc330en_US
dc.subject.keywordTaxationen_US
dc.subject.keywordminingen_US
dc.subject.keywordrent extractionen_US
dc.subject.keywordroyaltyen_US
dc.subject.keywordnon-renewable natural resourceen_US
dc.subject.keywordpresentvalue-of-revenue auctionen_US
dc.titleOptimal resource extraction contracts under threat of expropriationen_US
dc.typeWorking Paperen_US
dc.identifier.ppn593377117en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Center Discussion Papers, Economic Growth Center (EGC), Yale University

Files in This Item:
File Description SizeFormat
593377117.PDF210.25 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.