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Common property resource and private capital accumulation with random jump

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Author Info
Masatoshi Fujisaki (University of Hyogo)
Seiichi Katayama (Research Institute for Economics and Business Administration, Kobe University)
Hiroshi Ohta (Kobe University, GSICS)
Abstract

In [6], Long and Katayama presented a model of exploitation of a common property resource, when agents can also invest in private and productive capital. They considered the case where the resource extracted from a common pool is non-renewable. In this paper, we try to extend their result to the case where the common pool is under uncertainty in the sense that it could have a sudden increase or decrease in the process of extraction and moreover we shall calculate the exhaustion probability.

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp177.pdf
File Format: application/pdf
File Function: First version, 2005
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Publisher Info
Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number 177.

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Length: 15 pages
Date of creation: Aug 2005
Date of revision:
Handle: RePEc:kob:dpaper:177

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Related research
Keywords: common property resource; private capital accumulation; pure jump process; exhaustion probability; HJB (Hamilton-Jacobi-Bellman) equation;

Find related papers by JEL classification:
Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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This page was last updated on 2009-12-18.


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