IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v25y1992i1p41-59.html
   My bibliography  Save this article

Cost Specification and Firm Behaviour in a Hotelling Model of Resource Extraction

Author

Listed:
  • Denise Young

Abstract

In applied resource economics much attention has been focused.on the ability of the Hotelling model to explain observed firm behavior. In this paper, a preliminary specification search is performed to determine the appropriate cost function parameterization for the firms in the sample before proceeding to the estimation of the Euler equation. Once a cost function specification is chosen, the corresponding Euler equation is estimated via the Generalization Method of Moments (GMM), which allows for better estimates of the Euler equations than in previous studies. Even with the preliminary specification search and the use of GMM estimation, the behavior of the panel of fourteen Canadian copper mining firms in the data set examined does not seem to be consistent with the basic Hotelling model used.

Suggested Citation

  • Denise Young, 1992. "Cost Specification and Firm Behaviour in a Hotelling Model of Resource Extraction," Canadian Journal of Economics, Canadian Economics Association, vol. 25(1), pages 41-59, February.
    • Handle: RePEc:cje:issued:v:25:y:1992:i:1:p:41-59
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0008-4085%28199202%2925%3A1%3C41%3ACSAFBI%3E2.0.CO%3B2-X
    Download Restriction: only available to JSTOR subscribers
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:25:y:1992:i:1:p:41-59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.