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Declining Exhaustible Resource Rent with Small, Distinct Extractive Firms

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  • Hartwick, John
  • Bazhanov, Andrei
  • Song, Zhen

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.

Suggested Citation

  • Hartwick, John & Bazhanov, Andrei & Song, Zhen, 2007. "Declining Exhaustible Resource Rent with Small, Distinct Extractive Firms," Queen's Economics Department Working Papers 273615, Queen's University - Department of Economics.
    • Handle: RePEc:ags:quedwp:273615
    DOI: 10.22004/ag.econ.273615
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    References listed on IDEAS

    as
    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.
    2. Harold Hotelling, 1931. "The Economics of Exhaustible Resources," Journal of Political Economy, University of Chicago Press, vol. 39(2), pages 137-137.
    3. David Levhari & Nissan Liviatan, 1977. "Notes on Hotelling's Economics of Exhaustible Resources," Canadian Journal of Economics, Canadian Economics Association, vol. 10(2), pages 177-192, May.
    Full references (including those not matched with items on IDEAS)

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