Date(s) - 11/03/2017
3:00 pm - 4:30 pm
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The ninth seminar in the Department of Economics Seminar Series for the Fall 2017 term is Friday, 11/3/17. The seminars are open to everyone and are held in the Behavioral Sciences building, room 103, at 3:00pm.
This week’s speaker is Professor Larry Karp. Karp has been a professor in the Department of Agricultural and Resource Economics at the University of California, Berkeley for the past 33 years. He earned his B.A. in Economics from the University of California, Berkeley and his Ph.D. in Agricultural Economics from the University of California, Davis. Karp’s research interests are in the fields of environmental and resource economics, trade policy, and industrial organization.
Karp is presenting his paper “Trade and Resource Sustainability with Asset Markets.”
Trade changes incentives to protect an open-access natural resource independently of its effect on the resource price. General equilibrium linkages cause resource policy to affect the price of privately owned assets regardless of whether they are used in the resource sector. In the closed economy, the asset market in our overlapping generations setting creates incentives for currently living agents to protect the natural resource. The interplay of the asset market and general equilibrium effects cause trade to reverse these incentives. Trade liberalization and the establishment of formal property rights are policy complements: the former makes the latter more important.