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- W2007561742 abstract "Abstract This paper derives conditions under which optimal programs exist for a general model of the competitive or monopolistic mining firm. The model significantly extends and synthesizes previous formulations by including both resource extraction and discoveries of new reserves, with stock-dependent resource exploitation costs and incomplete resource exhaustion, endogenous technical innovation, and state-dependent resource demand. In addition, the analysis addresses complications arising from having optimal programs defined over an ‘unbounded horizon’, with the possibility of either a finite or infinite terminal time and a non-zero terminal (‘salvage’) valuation if the terminal time is finite. The necessity of the infinite-horizon transversality conditions also is established. The paper illustrates a strongly intuitive approach to existence questions for infinite-horizon or unbounded-horizon control problems, with weaker concavity and interiority assumptions than are often encountered in the literature." @default.
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- W2007561742 date "1986-09-01" @default.
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- W2007561742 title "Existence and transversality conditions for a general ‘unbounded-horizon’ model of the mining firm" @default.
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- W2007561742 doi "https://doi.org/10.1016/0165-1889(86)90004-7" @default.
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