This study analyses the economic rent generated by the exploitation of a non-renewable resource, and the taxation of this rent. We present a synthetic model of a non-renewable-resource sector where deposits must be costly developed before they are exploited; the analysis emphasizes the effect of...

We analyze a dynamic game between a buyer and a seller of a nonrenewable resource. The seller chooses resource supply; the buyer can pay a fixed cost to invent a perfect substitute for the resource at any time. In closed-loop equilibrium, the buyer adopts the substitute when the resource is...

Abstract We analyze a dynamic game between a buyer and a seller of an exhaustible resource. The seller chooses resource supply; the buyer can pay a fixed cost to invent a perfect substitute for the resource at any time. In closed-loop equilibrium, the buyer adopts the substitute when the...

In this paper I examine the relationship between discount rate uncertainty, general macroeconomic expectations and hyperbolic discounting. Two major contributions are made. First, I resolve the expected net present value / expected net future value paradox set by Gollier (Finance Research...

The real option valuation method is often presented as an alternative to the conventional discounted cash flow (DCF) approach because it is able to recognize additional project value due to the presence of management flexibility. However, these two valuation methods can be separated on a more...

This paper investigates the effect of having a leader in a laboratory public bad experiment with five subjects in each group. The control treatment is a standard public bad experiment, while in the leader treatments the design is such that in each group the leader decides first on his or her...

In this article I empirically examine the daily convenience yield behavior for six commodity markets (crude oil, heating oil, gasoline, wheat, corn, and copper). The results illustrate that convenience yield behavior can be statistically explained within an option pricing framework. However,...

A model of pricing of natural-resource commodities that integrates financial and product markets is derived and tested. In the model, price-taking firms extract from a deposit of an exhaustible resource; production is risky, and investors own shares in the mine. Investors can diversify their risk...

The identification of the forces that drive oil stock prices is extremely important given the size of the Oilamp;Gas industry and its links with the energy sector and the environment. In the next decade oil companies will have to deal with international policies to contrast climate change. This...