Managing Water: Rights, Markets, and Welfare

@article{Zaeske2017ManagingWR,
  title={Managing Water: Rights, Markets, and Welfare},
  author={Andrew L. Zaeske and Chandra Kiran B. Krishnamurthy},
  journal={Environmental Economics eJournal},
  year={2017}
}
This article investigates key aspects related to managing water resources, and explores their implications for economic efficiency: incomplete property rights; overallocation of water; the divergence between water entitlements and productivity of water use. These issues are explored in a production model with a single input, water drawn from a common source, and two main insights are offered. First, a novel result relating welfare and water entitlements is established, an equivalence between… 
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