Since full economic liberalization is not generally feasible, getting the prices of selected agricultural markets "right", involves optimal price distortions. A methodology is developed for calculating the second-best output price in a particular market by incorporating externalities, government...

We model welfare gains from efficient allocation of groundwater over space and time relative to the status quo policy of financial cost recovery. In order to promote political feasibility, an intertemporal compensation plan is devised that renders the reform Pareto-improving. Gainers from the...

The optimal size and location of an invasive species population depend upon spatially differentiated biological growth, economic costs, and damages. Although largely absent from most economic models, spatial considerations matter because the likelihood and magnitude of the invasion vary...

The one-demand Hotelling model fails to explain the observed specialization of nonrenewable resources. We develop a model with multiple demands and resources to show that specialization of resources according to demand is driven by Ricardian comparative advantage while the order of resource use...

The theory of resource extraction has focused primarily on extraction when there is a single, homogeneous demand for the resource. In reality, however, we observe the simultaneous extraction of different resources such as oil, coal, and natural gas and multiple demands such as transportation,...