Where such behaviors as risk-taking and hard work are not subject to complete contracts, some distributions of assets (for instance the widespread use of tenancy) may preclude efficient contractual arrangements. In particular, the distribution of wealth may affect: (a) residual claimancy over...

In an optimal growth setting, where the only productive asset is a renewable resource which is jointly exploited, it is shown that competitively the resource may be over-used or under-used. The diversion from optimal use arises due to the externality embodied in the jointness of exploitation and...