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Declining Exhaustible Resource Rent with Small, Distinct Extractive Firms

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Author Info
John Hartwick () (Queen's University)
Andrei Bazhanov (Far Eastern National University, Vladivostok)
Zhen Song (Central University of Finance and Economics, Beijing)

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Abstract

We consider a competitive extraction industry comprising many small firms, each with a slightly different quality of mineral holdings. With "rapidly" declining quality of holding per firm we observe rent declining over and interval. We do not work with the planning solution, commonly invoked in the study of firms with distinct qualities of stock.

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File URL: http://www.econ.queensu.ca/working_papers/papers/qed_wp_1139.pdf
File Format: application/pdf
File Function: First version 2007
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Publisher Info
Paper provided by Queen's University, Department of Economics in its series Working Papers with number 1139.

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Length: 9 pages
Date of creation: Nov 2007
Date of revision:
Handle: RePEc:qed:wpaper:1139

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Related research
Keywords: exhaustible resources resource rent competitive extraction

Find related papers by JEL classification:
Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply
D41 - Microeconomics - - Market Structure and Pricing - - - Perfect Competition

This paper has been announced in the following NEP Reports:

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.:
  1. John Livernois & Patrick Martin, 2001. "Price, scarcity rent, and a modified r per cent rule for non-renewable resources," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 827-845, August. [Downloadable!] (restricted)
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This page was last updated on 2008-11-13.


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