The Notion of Effectual Supply and the Theory of Normal Prices with Exhaustible Natural Resources

Sergio Parrinello

Economic Systems Research, 2004, vol. 16, issue 3, 311-322

Abstract: This paper proposes a revised theory of the classical notion of normal prices for an economy with exhaustible natural resources. The author introduces the notion of effectual supply and argues that Sraffa's equations, without the Hotelling rule equation, can be reformulated to deal with the existence of an exhaustible natural resource. Such a revision of a well-established theory requires a reinterpretation and methodological clarification of Sraffa's equations, but without a change in their mathematical form. The revised theory must focus on the effectual supply of the resource and it can ignore its total endowment.

Keywords: Exhaustible resources; Hotelling rule; normal prices; Sraffian analysis (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/0953531042000239392 (text/html)
Access to full text is restricted to subscribers.

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: https://EconPapers.repec.org/RePEc:taf:ecsysr:v:16:y:2004:i:3:p:311-322

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CESR20

DOI: 10.1080/0953531042000239392

Access Statistics for this article

Economic Systems Research is currently edited by Bart Los and Manfred Lenzen

More articles in Economic Systems Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().