@article{Freebairn:149838,
      recid = {149838},
      author = {Freebairn, John and Quiggin, John},
      title = {Water Rights for Variable Supplies},
      address = {2005-05},
      number = {1744-2016-140874},
      series = {Murray Darling Program},
      pages = {29},
      year = {2005},
      abstract = {The relative merits of different property right systems to  allocate water among different extractive uses where  variability of supply is important are evaluated. Three  systems of property rights are considered. In the first,  variable supply is dealt with through the use of water  rights defined as shares of the total quantity available.  In the second, there are two types of water rights, one for  water with a high security of supply and the other a  low-security right for the residual supply. The third is a  system of state-contingent claims. With zero transaction  costs, all systems are efficient. In the realistic  situation where transaction costs matter, the  state-contingent claims system is globally optimal, and the  system with high-security and low-security rights is  preferable to the system with share allocations.},
      url = {http://ageconsearch.umn.edu/record/149838},
      doi = {https://doi.org/10.22004/ag.econ.149838},
}