Incompleteness of insurance markets is a crucial weakness of developing countries. In this context, the poor households of rural regions often exploit common property resources, such as forests, as insurance in case of economics stress. The aim of this paper is to derive the implications of this...

The impact of the safety-net use of Common-pool resources (CPR) on the individual investment into and extraction from the commons is analyzed in this paper. Agents of the community first choose to invest in their private project and in the CPR; second, they choose how much to extract from their...

The resource curse hypothesis relies on the resource-rich countries tendency to grow slower than resource-poor countries. Focusing on forest issues, this paper extends the resource curse hypothesis to environmental degradation: how do forest endowment and forest harvesting affect deforestation?...