Uncertainty and Exhaustible Resource Markets.
Demand and reserve uncertainty are included in a simple model of an exhaustible resource market by allowing the demand function and the reserve level to fluctuate via continuous-time stochastic processes. Thus, producers always know current demand and reserves but do not know what demand and reserve...
| Publicado en: | Journal of Political Economy Vol. 88; no. 6; pp. 1203 - 1226 |
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| Formato: | Artículo |
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University of Chicago Press
Dec80
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=5189309&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 5189309 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00223808 JPE jtl: Journal of Political Economy issn: 00223808 maglogo: N pubinfo: dt: Dec80 vid: 88 iid: 6 pid: 415 pub: University of Chicago Press artinfo: ui: 5189309 10.1086/260935 ppf: 1203 ppct: 23 formats: tig: atl: Uncertainty and Exhaustible Resource Markets. aug: au: Pindyck, Robert S. su: Demand function Reserves (Accounting) Production (Economic theory) sug: subj: Demand function Reserves (Accounting) Production (Economic theory) ab: Demand and reserve uncertainty are included in a simple model of an exhaustible resource market by allowing the demand function and the reserve level to fluctuate via continuous-time stochastic processes. Thus, producers always know current demand and reserves but do not know what demand and reserves will be in the future. I show that demand uncertainty has no effect on the expected dynamics of market price, while reserve uncertainty shifts the expected rate of change of price only if extraction costs are nonlinear in reserves. However, if the demand function is nonlinear, both demand and reserve uncertainty affect the dynamics of production, whatever the character of extraction costs. The model is also extended to include exploration, first as a means of reducing uncertainty and second as a means of accumulating reserves, with uncertainty over the future response of discoveries to exploratory effort. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1980 holdings: @attributes: islocal: N |
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