Sectoral Supply of Minerals of Varying Quality
Scandinavian Journal of Economics1986Vol. 88(4), pp. 605–605
Citations Over TimeTop 10% of 1986 papers
Abstract
In this sectoral model of mineral production, investment in capacity and variation in orebody grade and volume help explain some stylized facts. More than one grade of ore may be exploited simultaneously. Mine exhaustion, but not necessarily entry, occurs in declining order of grade. The price may rise or fall but is likely to fall initially (young industry) and must eventually rise, at less than the interest rate unless demand expands rapidly. These trends exhibit fluctuations due to entry and exhaustion of deposits. Resource price cyclicality is reinforced because mines keep producing at capacity when the price is falling.
Related Papers
- → A Modern Guide to Keynesian Macroeconomics and Economic Policies(2013)9 cited
- → Modelling Anticipated and Temporary Fiscal Policy Shocks in a Macro-Econometric Model of Canada(1988)5 cited
- Modern Macroeconomic Analysis(1993)
- → International capital markets and open‐economy macroeconomics(1996)3 cited
- → THE UNEMPLOYMENT‐INFLATION DILEMMA IN MACROECONOMICS: SOME CONTRADICTORY ASPECTS OF CONTEMPORARY THEORY AND POLICY*(1976)2 cited