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

Chuan-Zhong Li () and Löfgren , Karl-Gustaf ()
Additional contact information
Löfgren , Karl-Gustaf: 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)
New Economics Papers: this item is included in nep-ppm
Date: Written
View list of references

Downloads: (external link)
http://www.econ.umu.se/ues/ues752.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hhs:umnees:0752

Access Statistics for this paper

More papers in Umeå Economic Studies from Umeå University, Department of Economics
Address: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
Contact information at EDIRC.
Series data maintained by Kjell-Göran Holmberg ().