ECN437Hotelling's Theorem

ECN437Hotelling's Theorem - ECN437 Hotelling'sTheorem ....

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ECN437 Hotelling's Theorem During the last two centuries there have been many periods of wide public  concern that the economy was about to collapse because some critical  natural resource was about to be exhausted. Some of the resources people  worried about seem almost funny today: whale oil (used as a lighting fuel  before the Civil War), timber, iron and coal (now known to be very, very  abundant). More recently, the focus has been on oil. Since the early  twentieth century, people have been worried that the world was using up its  supply of oil much too fast. In the 1920's, for example, the chief geologist of  the U.S. Geological Survey predicted that U.S. oil reserves would be  exhausted by 1934. In a famous paper called "The Economics of Exhaustible Resources", Harold  Hotelling pointed out that deposits of exhaustible resources are an asset, 
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  • Spring '12
  • PeterWilcoxen
  • U.S. Geological Survey, exhaustible resources, percentage growth rate, U.S. oil reserves, remote access web, JSTOR archive.

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