Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171583
Authors: 
Leinert, Lisa
Year of Publication: 
2010
Series/Report no.: 
Economics Working Paper Series 10/140
Abstract: 
The Hotelling rule argues that the price for a nonrenewable resource adjusts to the shadow value of the resource, reflecting the remaining availability of the resource. We empirically test the Hotelling rule on the effect of unanticipated oil field discoveries. We do not find evidence for a significant adjustment of the price of crude oil to news about greater resource availability and therefore conclude that the price for crude oil does not follow the theoretically optimal price path.
Subjects: 
Nonrenewable Resource
Oil Price
Exhaustible Resources
Information Acquisition
JEL: 
Q31
Q41
G14
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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