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The Endogenous Formation of Coalitions to Provide Public Goods: Theory and Experimental Evidence AgEcon
McEvoy, David M.; Cherry, Todd L.; Stranlund, John K..
This paper examines the endogenous formation of coalitions that provide public goods in which players implement a minimum participation requirement before deciding whether to join. We demonstrate theoretically that payoff-maximizing players will vote to implement efficient participation requirements and these coalitions will form. However, we also demonstrate that if some players are averse to inequality they can cause inefficient outcomes. Inequality-averse players can limit free riding by implementing larger than efficient coalitions or by blocking efficient coalitions from forming. We test the theory with experimental methods and observe individual behavior and coalition formation consistent with a model of inequality-averse players.
Tipo: Working or Discussion Paper Palavras-chave: Public goods; Coalition formation; Inequality aversion; Participation requirement; Experiments; Institutional and Behavioral Economics; Public Economics; C92; H41.
Ano: 2011 URL: http://purl.umn.edu/102265
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Costly Enforcement of Voluntary Environmental Agreements with Industries AgEcon
McEvoy, David M.; Stranlund, John K..
Although the theoretical literature on the performance of voluntary approaches to environmental protection has progressed quite far in the last decade, no one has rigorously addressed the obvious point that even voluntary emissions control policies must be enforced. This paper examines the consequences of the need for costly enforcement of voluntary environmental agreements with industries on the ability of these agreements to meet regulatory objectives, the levels of industry participation with these agreements, and the relative efficiency of voluntary and regulatory approaches. We find that enforcement costs that are borne by the members of a voluntary emissions control agreement limit the circumstances under which an agreement can form in place of an...
Tipo: Working or Discussion Paper Palavras-chave: Voluntary agreements; Self-enforcing agreements; Emissions tax; Enforcement; Environmental Economics and Policy; L51; Q58.
Ano: 2007 URL: http://purl.umn.edu/7382
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Enforcing 'Self-Enforcing' International Environmental Agreements AgEcon
McEvoy, David M.; Stranlund, John K..
Theoretical analyses of international environmental agreements (IEAs) have typically employed the concept of self-enforcing agreements to predict the number of parties to such an agreement. The term self-enforcing, however, is a bit misleading. The concept refers to the stability of cooperative agreements, not to enforcing these agreements once they are in place. Most analyses of IEAs simply ignore the issue of enforcing compliance. In this paper we analyze a static IEA game in which parties to an agreement finance an independent enforcement body with the power to monitor the parties'’ compliance to the terms of an IEA and impose penalties in cases of noncompliance. This approach is broadly consistent with the enforcement mechanism of the Kyoto Protocol...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2006 URL: http://purl.umn.edu/21403
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Can an Industry Voluntary Agreement on Food Traceability Minimize the Cost of Food Safety Incidents? AgEcon
McEvoy, David M.; Souza Monteiro, Diogo M..
In the recent past the United States has had a number of severe food-safety outbreaks in the produce, vegetable and beef industry that greatly disrupted the food system. In all these outbreaks here were severe disruptions on sales that affected the whole industry, and it took an extended period of time to correctly locate the source of the outbreak. Traceability can be an effective tool to reduce the impact of food safety incidents my expediting the search for the origin of outbreaks. This paper investigates to what extent an industry-led voluntary agreement for providing traceability can reduce the cost of a food-safety outbreak. We find that a voluntary agreement on traceability can successfully reduce the cost of a food-safety outbreak but will unlikely...
Tipo: Conference Paper or Presentation Palavras-chave: Traceability; Voluntary agreements; Food safety; Food Consumption/Nutrition/Food Safety.
Ano: 2008 URL: http://purl.umn.edu/43860
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The Effects of ITQ Management on Fishermen’s Welfare When the Processing Sector is Imperfectly Competitive AgEcon
McEvoy, David M.; Brandt, Sylvia J.; Lavoie, Nathalie; Anders, Sven M..
In this paper we use a general model of imperfect competition to predict welfare changes within an open-access fishery transitioning to individual transferable quota (ITQ) management. Although related research has explored the effects of market power in the harvesting sector on ITQ performance, none have considered the implications of an imperfectly competitive processing sector. This study addresses this question specifically in the context of the Atlantic herring fishery, although its implications are relevant to all fisheries with similar industry structure. Our results show that ITQs could have a negative impact on fishermen’s welfare when processors have market power and the cap on aggregate harvest is binding or becomes binding with the...
Tipo: Working or Discussion Paper Palavras-chave: ITQ; Imperfect competition; Welfare analysis; Fisheries; Risk and Uncertainty; D43; Q22; Q28; L13.
Ano: 2007 URL: http://purl.umn.edu/7389
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Enforcing 'Self-Enforcing' International Environmental Agreements AgEcon
McEvoy, David M.; Stranlund, John K..
Theoretical analyses of international environmental agreements (IEAs) have typically employed the concept of self-enforcing agreements to predict the number of parties to such an agreement. The term self-enforcing, however, is a bit misleading. The concept refers to the stability of cooperative agreements, not to enforcing these agreements once they are in place. Most analyses of IEAs simply ignore the issue of enforcing compliance by parties to the terms of an agreement. In this paper we analyze an IEA game in which parties to an agreement finance an independent enforcement body with the power to monitor the parties' compliance to the terms of the IEA and impose penalties in cases of noncompliance. This approach is broadly consistent with the...
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy; International Relations/Trade.
Ano: 2006 URL: http://purl.umn.edu/14537
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The Problem of Maintaining Compliance within Stable Coalitions: Experimental Evidence AgEcon
McEvoy, David M.; Murphy, James J.; Spraggon, John M.; Stranlund, John K..
This study examines the performance of stable cooperative coalitions that form to provide a public good when coalition members have the opportunity to not comply with their commitments. A stable coalition is one in which no member wishes to leave and no non-member wishes to join. To counteract the incentive to violate their commitments, coalition members fund a third-party enforcer. This leads to the theoretical conclusion that stable coalitions are larger (and provide more of a public good) when their members must finance enforcement relative to when compliance is ensured without the need for costly enforcement. However, our experiments reveal that giving coalition members the opportunity to violate their commitments while requiring them to finance...
Tipo: Working or Discussion Paper Palavras-chave: Stable coalitions; Self-enforcing agreements; Compliance; Enforcement; Public goods; Environmental Economics and Policy; Institutional and Behavioral Economics; Public Economics; H41; C92.
Ano: 2008 URL: http://purl.umn.edu/42126
Registros recuperados: 7
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