Parrinello, Sergio (2003): Exhaustible natural resources, normal prices and intertemporal equilibrium. Published in: Working Paper Dipartimento di Economia Pubblica , Vol. 57, (June 2003): pp. 1-25.
Download (542kB) | Preview
This paper proposes an extension of the classical theory of normal prices to an n-commodity economy with exhaustible natural resources. The central idea is developed by two analytical steps. Firstly, it is assumed that a given flow of an exhaustible resource in short supply is combined with the coexistence of two methods of production using that resource. Sraffa’s equations are reinterpreted by adopting the concept of effectual supply of natural resources and avoiding the assumption of perfect foresight. Secondly, in force of the Hotelling rule, some limitations are imposed to the dynamics of normal prices and, by implication, to technical and structural change. A comparison, between such approach and the notion of intertemporal equilibrium with natural resources, introduces the central argument. The final part of the paper presents a critical assessment of recent works in this area. The conclusions are focused on methodological issues. Final version of this working paper: S. Parrinello, “The Notion of Effectual Supply and the Theory of Normal Prices with Exhaustible Natural Resources”, Economic Systems Research, Vol. 16, No. 3, September 2004.
|Item Type:||MPRA Paper|
|Original Title:||Exhaustible natural resources, normal prices and intertemporal equilibrium|
|Keywords:||Exhaustible resources; normal prices, Sraffian analysis, Hotelling rule|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q32 - Exhaustible Resources and Economic Development
D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D57 - Input-Output Tables and Analysis
B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B50 - General
|Depositing User:||Sergio Parrinello|
|Date Deposited:||10. May 2011 15:20|
|Last Modified:||17. Feb 2013 19:14|
Bidard, C. & Erreygers, G. (2001), “The Corn-Guano Model”,Metroeconomica ,. 52, 3, pp. 243-267.
Bidard C. & Erreygers G. (2002), “A Critique of Parrinello’s Corn-Oil Model”, mimeo, December 2002).
Foley, D. & Michl, T. R., (1999), Growth and Distribution, Cambridge Mass.: Harvard University Press.
Garegnani, P. (1976), “On a Change in the Notion of Equilibrium in Recent ork on Value and Distribution”: A Comment on Samuelson”, In Brown, M., Sato, K. & Zarembka, P. (eds), Essays in Modern Capital Theory, Amsterdam: North-Holland, pp.25-45.
Kurz, H.D. & Salvadori N. (1995), Theory of Production, A Long PeriodAnalysis, Cambridge, Cambridge University Press.
Kurz, H.D. & Salvadori N. (1997), “Exhaustible Resources in a Dynamic Input-Output Model with ‘Classical’ Features”, Economic Systems Research, 9, pp.235-251.
Kurz, H.D. & Salvadori N. (2001), Classical Economics and the Problem of Exhaustible Resources”, Metroeconomica , 52, 3, pp.282-296.
Parrinello, S. (1982, 1983) “Terra” (Introduction and Part II), in G.Lunghini (Ed.), Dizionario Critico di Economia Politica, Torino, Boringhieri. English excerpt “Exhaustible natural resources and the classical method of long-period equilibrium” in: J. Kregel (Ed.), Distribution, Effective Demand and International Economic Relations, London, Macmillan.
Parrinello,S. (2001), “The Price of Exhaustible Resources”, Metroeconomica, 52, 3, pp.301-315.
Pasinetti L. (1993), Structural economic dynamics: A theory of economic consequences of human learning, Cambridge University Press.
Schefold B. (1989), Mr. Sraffa on Joint Production and other Essays, Unwin Hyman, London.
Schefold B. (1997), Normal Prices, Technical Change and Accumulation, MacMillan, London.
Schefold B.(2001), “Critique of the Corn-Guano Model”, Metroeconomica, 52, 3, pp.316- 328.
Strotz R. H. (1955-56), “Myopia and Inconsistency in Dynamic Utility Maximization”, Review of Economic Studies, vol. XXIII, p.165-