Intertemporal optimization, the Hotelling theory, and nonrenewable resource markets
Essay 1, Optimal Control With a Variable Horizon, generalizes the theory of optimal control by showing existence of a solution for problems in which the terminal date is a choice variable and may be finite or infinite, and for problems with an infinite horizon. Results are direct extensions of previous theorems, provided net benefit flows are uniformly bounded above by an integrable function and the value of any terminal stocks in a finite-horizon program becomes negligible as the terminal date becomes large. Essay 2, The Theory of Nonrenewable Resource Exploitation: Existence of an Optimal Plan, applies these results to the decision problem of an individual mining firm facing rising costs as the resource base is depleted. Essay 3, Perfect Foresight Market Equilibrium With a Nonrenewable Resource, develops sufficient conditions for existence and uniqueness of socially optimal and competitive equilibrium programs of production and consumption with a nonrenewable resource and a backstop substitute when agents have perfect foresight of future prices and costs.
- OSTI ID:
- 5455342
- Country of Publication:
- United States
- Language:
- English
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