We explore a dynamic commons problem and assess the welfare consequences of access to capital markets. The commons has … to the commons, encouraging its depletion. A sufficient condition for autarky to dominate market access for some levels … may arise: these result from market access, not the equilibrium concept. Key words: commons, capital markets, Washington …

We study extinction in a commons problem in which agents have access to capital markets. When the commons grows more … quickly than the interest rate, multiple equilibria are found for intermediate commons endowments. In one of these, welfare … instantly depletes the commons. Without markets - the classic environment - equilibria are unique; extinction dates and welfare …

We study extinction in a commons problem in which agents have access to capital markets. When the commons grows more … quickly than the interest rate, multiple equilibria are found for intermediate commons endowments. In one of these, welfare … access instantly depletes the commons. Without markets - the classic environment - equilibria are unique; extinction dates …