Interest rate and output price uncertainty and industry equilibrium for non-renewable resource extracting firms
AbstractWe establish convexity of a nonrenewable resource extracting agent's value function in the future interest rate, a random variable. A preference by the agent for future interest uncertainty follows. A rational expectations, m identical firm industry equilibrium is characterized and the links between interest rate uncertainty and output price uncertainty are investigated.
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Bibliographic InfoArticle provided by Elsevier in its journal Resources and Energy.
Volume (Year): 10 (1988)
Issue (Month): 1 (March)
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Web page: http://www.elsevier.com/locate/inca/505569
Other versions of this item:
- David Yeung & John Hartwick, 1985. "Interest Rate and Output Price Uncertainty and Industry Equilibrium for Nonrenewable Resource Extracting Firms," Working Papers 599, Queen's University, Department of Economics.
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