Abstract
In the present paper we investigate the impact of an anticipated shock in the world market price of an exhaustible resource commodity on the planning of optimal resource extraction in a small economy. It is found that the supply of this economy is not necessarily discontinuous and that, if a discontinuity occurs, the direction of the discontinuity depends on the value of the elasticity of marginal utility.
| Original language | English |
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| Place of Publication | Eindhoven |
| Publisher | Technische Hogeschool Eindhoven |
| Number of pages | 14 |
| Publication status | Published - 1984 |
Publication series
| Name | Memorandum COSOR |
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| Volume | 8410 |
| ISSN (Print) | 0926-4493 |