On Stockpiling Natural ResourcesResource and Energy Economics (2011)
Persistent and significant privately held stockpiles of minerals have long been an important empirical regularity in the United States. Such stockpiles would not rationally be held in a traditional Hotelling-style model, though firms could be willing to hold inventories if extraction costs are stock-dependent. More plausibly, if prices are stochastic, and sufficiently volatile, firms have an incentive to hold inventories to smooth production over time.
- Resource economics,
- Stochastic dynamic optimization
Citation InformationCharles F Mason. "On Stockpiling Natural Resources" Resource and Energy Economics Vol. 33 (2011)
Available at: http://works.bepress.com/charles_mason/17/