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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)

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://qed.econ.queensu.ca/working_papers/papers/qed_wp_1139.pdf
File Function: First version 2007
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Bibliographic 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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Keywords: exhaustible resources; resource rent; competitive extraction;

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  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.
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