Testing for common versus private property: The case of pesticide resistance

Abstract

Pesticide resistance management is modeled in a linear-quadratic form with price expectations being formed rationally. The parameter estimates allow testing of common property versus private property characteristics, and of the existence of resistance buildup. Using aggregate data on U.S. sales of herbicides, fungicides, and insecticides, the results show common property characteristics together with resistance buildup for insecticides, resistance buildup for fungicides, but no resistance buildup or common property characteristics for herbicides. This methodology could be used to test for other common property actions.