Advanced Search
MyIDEAS: Login

Does Price of an Essential Non-Renewable Resource Necessarily Grow?

In: Proceedings of the Conference on Globalization and Its Discontents

Contents:

Author Info

  • Ý. Hakan Yetkiner

    (Izmir University of Economics)

Abstract

Dasgupta and Heal’s 1974 paper extends Hotelling’s 1931 partial equilibrium model into a dynamic general equilibrium model. Both papers show that nonrenewable resource prices do grow exponentially, which is called the Hotelling’s rule in the literature. Empirical evidence on the contrary shows that most nonrenewable prices are constant in the long-run. The controversy between theory and empirical regulatory perhaps may be called the Hotelling’s Paradox. This paper, based on Dasgupta and Heal (1974), shows that nonrenewable dependent growth does not always generate skyrocketing resource prices. In particular, this paper shows that resource price converges to a constant under Cobb-Douglas technology and that the model economy dies out under a particular value of elasticity of marginal utility.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://eco.ieu.edu.tr/wp-content/proceedings/2007/0709.pdf
Download Restriction: no

Bibliographic Info

as in new window

This chapter was published in:

  • Oguz Esen & Ayla Ogus (ed.), 2007. "Proceedings of the International Conference on Globalization and Its Discontents," Proceedings of the IUE-SUNY Cortland Conference in Economics, Izmir University of Economics, number 2007.
    This item is provided by Izmir University of Economics in its series Papers of the Annual IUE-SUNY Cortland Conference in Economics with number 200709.

    Handle: RePEc:izm:prcdng:200709

    Contact details of provider:
    Postal: Sakarya Caddesi, No:156 35330 Balçova - İzmir
    Fax: (90) 232 279 2626
    Web page: http://eco.ieu.edu.tr
    More information through EDIRC

    Related research

    Keywords: Non-Renewable Resources; Hotelling; resource prices;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Sweeney, James L, 1977. "Economics of Depletable Resources: Market Forces and Intertemporal Bias," Review of Economic Studies, Wiley Blackwell, vol. 44(1), pages 125-41, February.
    2. Beatriz Gaitan & Richard S.J. Tal & I. Hakan Yetkiner, 2004. "The Hotelling's Rule Revisited in a Dynamic General Equilibrium Model," DEGIT Conference Papers c009_033, DEGIT, Dynamics, Economic Growth, and International Trade.
    3. Stiglitz, Joseph E, 1976. "Monopoly and the Rate of Extraction of Exhaustible Resources," American Economic Review, American Economic Association, vol. 66(4), pages 655-61, September.
    4. Peterson, Frederick M & Fisher, Anthony C, 1977. "The Exploitation of Extractive Resources: A Survey," Economic Journal, Royal Economic Society, vol. 87(348), pages 681-721, December.
    5. Jeffrey A. Krautkraemer, 1998. "Nonrenewable Resource Scarcity," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 2065-2107, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:izm:prcdng:200709. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ayla Ogus Binatli).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.