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- W2772795637 abstract "We analyze a natural resource extraction problem in a two-region economy with mobile labour. One region produces manufacturing goods while the other produces agriculture and extracts a non-renewable resource. Manufacturing production exhibits increasing returns-to-scale if the production level is sufficiently high. There are multiple long-run equilibrium labour allocations towards which the economy may converge. Under decentralized resource management, a tendency to over-extract the resource relative to the federal optimum makes convergence to a low-income equilibrium more likely. Optimal extraction from the federation's perspective satisfies a modified Hotelling's rule that takes into account the impact of resource extraction on manufacturing production." @default.
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- W2772795637 date "2018-01-01" @default.
- W2772795637 modified "2023-09-24" @default.
- W2772795637 title "Natural Resource Extraction in a Federation" @default.
- W2772795637 doi "https://doi.org/10.1628/001522118x15109346479939" @default.
- W2772795637 hasPublicationYear "2018" @default.
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