Short-Run Macroeconomics with Exhaustible Resources

Jon Harkness

Working Paper from Economics Department, Queen's University

Abstract: This paper constructs a simple, two-sector stochastic equilibrium macro-model of a closed economy. There is an extractive sector which produces raw materials as an intermediate input into a manufacturing sector. Natural resources are exhaustible. In the short-run, with the capital stock fixed, extraction appreciably lowers the natural resource stock. The model does not have a stationary solution because every variable's value is tied to the diminishing size of resource stocks.

Pages: 28
Date: 1983
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:qed:wpaper:527

Access Statistics for this paper

More papers in Working Paper from Economics Department, Queen's University Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().