Resource Extraction Contracts Under Threat of Expropriation
Theory and Evidence
Bibliographic Data
| ID | 19317606 |
|---|---|
| Authors | Johannes Stroebel (0000-0002-3926-2353, New York University), Arthur van Benthem (0000-0002-1028-9464, University of Pennsylvania) |
| Year | 2013 |
| Volume | 95 |
| Issue | 5 |
| Pages | 1622-1639 |
| Publication date | 2013-12-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Review of Economics and Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0034-6535 • E-ISSN: 1530-9142 |
| Publisher | MIT Press - Journals (PUBLISHER) |
| DOI | 10.1162/rest_a_00333 |
| OpenAlex | W3124749748 |
| Language | EN |
| Citations received | 8 |
| References cited | 22 |
We use fiscal data on 2,468 oil extraction agreements in 38 countries to study tax contracts between resource-rich countries and independent oil companies. We analyze why expropriations occur and what determines the degree of oil price exposure of host countries. With asymmetric information about a country's expropriation cost, even optimal contracts feature expropriations. Near linearity in the oil price of real-world hydrocarbon contracts also helps to explain expropriations. We show theoretically and verify empirically that oil price insurance provided by tax contracts is increasing in a country's cost of expropriation and decreasing in its production expertise. The timing of actual expropriations is consistent with our model
Business · Economics · Expropriation · Market economy · Non-renewable resource · Resource (disambiguation) · Economic Policies and Impacts · Fiscal Policy and Economic Growth · Natural Resources and Economic Development
Geopolitical competition risks over critical minerals
Resource nationalism
Competing investor response to direct and indirect expropriation
The power of mineral
Natural resources, decentralization, and risk sharing
The shifting natural wealth of nations
Winners and losers of a Russian oil-export restriction
Oil, elections and fiscal transparency
Ownership Risk, Investment, and the Use of Natural Resources
Implications of Efficient Risk Sharing without Commitment
The Colonial Origins of Comparative Development
The Economic Implications of Learning by Doing
Endogenous Matching and the Empirical Determinants of Contract Form
A Theory of Expropriation and Deviations from Perfect Capital Mobility
| Unique citing works | 8 |
|---|---|
| Citations per year | 0,8 |
| Citation span | 2016 - 2026 (11) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 8 |