Bubbles In Prices Of Exhaustible Resources
AbstractAside from the equilibrium that Hotelling (1931) displayed, his model of non-renewable resources also contains a continuum of bubble equilibria. In all the equilibria the price of the resource rises at the rate of interest. In a bubble equilibrium, however, the consumption of the resource peters out, and a positive fraction of the original stock continues to be traded forever. And that may well be happening in the market for high-end Bordeaux wines.
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Bibliographic InfoPaper provided by American Association of Wine Economists in its series Working Papers with number 45830.
Date of creation: Nov 2008
Date of revision:
wine; exhaustible resource; bubble; Research Methods/ Statistical Methods; Resource /Energy Economics and Policy;
Other versions of this item:
- Boyan Jovanovic, 2008. "Bubbles in Prices of Exhaustible Resources," 2008 Meeting Papers 26, Society for Economic Dynamics.
- Boyan Jovanovic, 2007. "Bubbles in Prices of Exhaustible Resources," Levine's Working Paper Archive 122247000000001414, David K. Levine.
- Boyan Jovanovic, 2007. "Bubbles in Prices of Exhaustible Resources," NBER Working Papers 13320, National Bureau of Economic Research, Inc.
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-10 (All new papers)
- NEP-CUL-2009-01-10 (Cultural Economics)
- NEP-ENE-2009-01-10 (Energy Economics)
- NEP-ENV-2009-01-10 (Environmental Economics)
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