Harstad, Bård; Mideksa, Torben - 2015
Motivated by tropical deforestation, we analyze (i) a novel theory of resource extraction, (ii) the optimal … conservation contract, (iii) when the donor prefers contracting with central rather than local governments, and (iv) how the donor …'s presence may induce institutional change. Deforestation can be legal or illegal in the model: each district decides how much to …