The Value Of Secure Property Rights: Evidence From Global Fisheries
Property rights are commonly touted as a solution to common pool resource problems. But in practice the security of these property rights varies substantially owing to differences in design. In fisheries, the design of Individual Transferable Quotas (ITQs) varies widely; the consequences of these design differences on economic outcomes have not been studied. To test whether the security of these property rights affects asset values, the authors compile a unique dataset to examine the relationship between the exclusivity of property rights and the dividend price ratios for ITQs.