6533b873fe1ef96bd12d4a94
RESEARCH PRODUCT
Adjustment costs, uncertainty, and the theory of investment: the case of non-renewable natural resources
Santiago J. Rubiosubject
MicroeconomicsMarginal costEconomics and Econometricsmedia_common.quotation_subjectEconomicsManagement Monitoring Policy and LawInvestment (macroeconomics)Function (engineering)Natural resourceNon-renewable resourcemedia_commondescription
Abstract This paper examines the effects of mineral price and extraction cost uncertainty on the investment program of a competitive resource-extracting industry that faces convex costs of adjustment. The results show that depletion of mineral reserves will slow down if the marginal adjustment cost function is concave or linear, whereas the effect will be ambiguous if the function is convex.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 1992-09-01 | Journal of Environmental Economics and Management |