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On Stockpiling Natural Resources
Resource and Energy Economics (2011)
  • Charles F Mason, University of Wyoming
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
Publication Date
Citation Information
Charles F Mason. "On Stockpiling Natural Resources" Resource and Energy Economics Vol. 33 (2011)
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