The Optimal Extraction of Exhaustible Resources

Policymakers concerned about rapid swings in commodity prices seek economic guidance about causal factors and future trends, but standard models—based on Harold Hotelling’s classic 1931 theory—are unable to explain actual data on price variability for a wide range of commodities. In this paper, we review this “Hotelling puzzle” and suggest modifications to current theory that may improve explanations of commodity price changes and provide better policy advice.

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Year of publication:	2014-12-11
Authors:	Chari, V. V. ; Christiano, Lawrence J.
Institutions:	Federal Reserve Bank of Minneapolis
Subject:	Commodities \| Prices

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Extent:	application/pdf
Series:	Economic Policy Paper.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Economic Policy Paper Number 14-5 7 pages
Classification:	E31 - Price Level; Inflation; Deflation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011127928