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- Common Property Management: Coalitions, Stock Effects and Congestion

Collective action in the form of proceeds-sharing partnerships helps to balance the incentives for excessive effort from individual action or for free-riding among the members of the partnership. Within this context, previous literature has analyzed congestion costs and stock externalities separately. However, the correct formulation of policies needs to consider that a) congestion and proceeds-sharing have to be disentangled and b) congestion costs and stock externalities are intertwined. In this way it is possible to design efficient policy instruments that aim to offset one externality while taking account of an already existing policy that aims to offset the other externality. If the interdependence of externalities is not contemplated, the implementation of a policy instrument maybe evaluated positively, when in fact the opposite result is obtained with a detailed analysis. The interplay between proceeds-sharing, congestion costs and stock externalities is analyzed by using a two-stage optimization formulation so that each effect can be isolated and policies can be specifically targeted. The study extends and generalizes previous results concerning the optimal size of partnerships and the necessary conditions for the equivalence between partnership solutions and the social optimum.

- Effects of public healthcare budget cuts on life satisfaction in Spain

The paper investigates the impact the changes in the health care budget had on the reported level of satisfaction in Spain during the recent economic crisis. We match individual-level data from four different waves of the European Social Survey (ESS) with regional-level expenditures in both public and private health care services between 2008-2014. Specifically, we analyze the effect of the three main public health care spending components (hospital and specialized health care, pharmacy and primary health care) and the aggregate private expenditures on health care directly borne by households, namely the out-of-pocket payments. The results show that, after controlling for most of the socio-economic variables affecting happiness, self-reported level of life satisfaction is correlated to the provision health care services in the country. In particular, hospital and specialized health care, weighted per usage, and spending in primary health care services per capita are both significant and positively correlated to life satisfaction, while expenditures in pharmacy services are not.

- Utilizing energy-water nexus for groundwater management: Solutions for South Asian groundwater decline

India is the largest groundwater user in the world and most of its aquifers are overexploited. It is estimated that 60 percent of them will be in a critical state in the near future. Normally groundwater overdraft ceases as soon as the marginal extraction costs exceed marginal benefits due to the fall of the water table of the aquifer. However, farmers are charged a flat rate without metering the electricity consumption, or the provision of the power is even completely free of charge. These politically motivated subsidies for electric power in India led to a continuous decline of groundwater tables far beyond economic reasoning based on agricultural profits. Therefore, any policy designed to address the problem of groundwater management necessarily needs to take into account the energy water nexus, in particular the pricing of the electricity employed for the extraction of groundwater. This paper analyzes different farm-based policy options taking into account the dynamics of the aquifer and their effect on social welfare, private profits and efficiency.