A note on the theory of investment: Hotelling's rule under process independence

Chuan-Zhong Li (chuanzhong.li@nek.uu.se) and Karl-Gustaf Löfgren (karl-gustaf.lofgren@econ.umu.se)
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Karl-Gustaf Löfgren : Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden

No 752, Umeå Economic Studies from Umeå University, Department of Economics

Abstract: This note shows that the welll-known Hotelling rule holds for a wider class of capital investment projects with a property of process independence. Optimality behavior is therefore not a necessary condition for deriving the result.

Keywords: Hotelling's rule; capital investment and process independence (search for similar items in EconPapers)
JEL-codes: D10 Q20 (search for similar items in EconPapers)
Pages: 5 pages
Date: 2008-10-10
New Economics Papers: this item is included in nep-ppm
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Published in Letters in Spatial and Resource Sciences, 2010.

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Journal Article: A note on the theory of investment: Hotelling’s rule under process independence (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:umnees:0752

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