Bubbles in prices of exhaustible resources
By: Boyan Jovanovic
Contributors: National Bureau of Economic Research
Series: NBER working paper series -- working paper 13320; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13320.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] /
Description: "Aside from the equilibrium that Hotelling (1931) displayed, his model of non-renewable resources also contains a continuum of bubble equilibria.  In all the equilibria the price of the resource rises at the rate of interest.  In a bubble equilibrium, however, the consumption of the resource peters out, and a positive fraction of the original stock continues to trade forever.  And that may well be happening in the market for high-end Bordeaux wines"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 8/29/2007.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.