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Costello, Christopher J. - 2015

damage. As expected, when the environmental damage from mining is known, the socially optimal timing will depend on the … mining until better information arrives. We show conditions under which it is optimal to postpone the mining decision … marginal mine owner is completely indifferent between mining immediately and at any point in the future. Thus, for our problem …

Persistent link: https://www.econbiz.de/10013019516

Elephants

Kremer, Michael; Morcom, Charles - 2022

Existing models of open-access resources are applicable to non-storable resources, such as fish. Many open-access resources, however, are used to produce storable goods. Elephants, rhinos, and tigers are three prominent examples. Anticipated future scarcity of these resources will increase...

Persistent link: https://www.econbiz.de/10014106205

Hotelling Under Pressure

Anderson, Soren T. - 2014

We show that oil production from existing wells in Texas does not respond to price incentives. Drilling activity and costs, however, do respond strongly to prices. To explain these facts, we reformulate Hotelling's (1931) classic model of exhaustible resource extraction as a drilling problem:...

Persistent link: https://www.econbiz.de/10013050318

A Spatial Approach to Energy Economics

Moreno Cruz, Juan - 2014

We develop a spatial model of energy exploitation where energy sources are differentiated by their geographic location and energy density. The spatial setting creates a scaling law that magnifies the importance of differences across energy sources. As a result, renewable sources twice as dense,...

Persistent link: https://www.econbiz.de/10013064302

Bubbles in Prices of Exhaustible Resources

Jovanovic, Boyan - 2007

Aside from the equilibrium that Hotelling (1931) displayed, his model of non-renewable resources also contains a continuum of bubble equilibria. In all the equilibria the price of the resource rises at the rate of interest. In a bubble equilibrium, however, the consumption of the resource peters...

Persistent link: https://www.econbiz.de/10012776202

Decentralized Mining in Centralized Pools

Cong, Lin William - 2019

The rise of centralized mining pools for risk sharing does not necessarily undermine the decentralization required for … disproportionately fewer miners, and thus grow more slowly. Instead, mining pools as a financial innovation escalate the arms race among … evidence from Bitcoin mining supports our model predictions. The economic insights inform many other blockchain protocols as …

Persistent link: https://www.econbiz.de/10012891776

Nonlinear Taxation of Risky Assets and Investment, with Application to Mining

MacKie-Mason, Jeffrey K. - 2010

An intertemporal capital asset valuation approach is applied to analyzing the effects of nonlinear taxes on asset values and optimal investment decisions. The method is quite general, and is illustrated both analytically and numerically, The paper studies the effects of nonlinearities in the...

Persistent link: https://www.econbiz.de/10012762783

Conceptually Based Measures of Structural Adaptability

Krishna, Kala - 2021

This paper provides definitions and measures of the extent of adaptability of an economy to exogenous changes in product prices, factor availability and technological change. It is argued that flexibility can in general only be defined relative to the exogenous changes that occur. Using a dual...

Persistent link: https://www.econbiz.de/10013219307

Macro-Economic Adjustment with Import Price Shocks : Real and Monetary Aspects

Bruno, Michael; Sachs, Jeffrey - 2021

imports into a theory of macro-economic adjustment derives from the particular set of events that have affected the industrial …

Persistent link: https://www.econbiz.de/10013224712

Macroeconomic Adjustment Under Bretton Woods and the Post-Bretton Woods Float : An Impulse-Response Analysis

Bayoumi, Tamim A.; Eichengreen, Barry - 2021

We use time-series methods to estimate a simple aggregate-supply aggregate-demand model in order to analyze the comparative performance of fixed- and flexible-exchange-rate systems and test competing hypotheses designed to explain shifts between exchange-rate regimes. The paper provides a...

Persistent link: https://www.econbiz.de/10013226928