SOME COSTS OF INCOMPLETE PROPERTY-RIGHTS WITH REGARD TO FEDERAL GRAZING PERMITS

Public land uses, other than raising livestock, have gained greater im portance in policy proposals recently. Under the current property righ ts regime, the market solution of trading grazing permits is restricte d; political action is used to allocate public land rise. The effect o f increased political pressure to emphasize non-commercial rises on gr azing permits values is estimated. If the rights to glazing permits we re secure and transferable, then the grazing permits values would not decrease in value as noncommercial uses become more desired. Results i ndicate the opposite effect occurs in that as non-commercial uses beco me more dear, grazing permit values have declined.