Aggressive Oil Extraction and precautionary Saving: Coping with Volatility.
The effects of stochastic future oil prices on optimal oil extraction paths and optimal tax, spending and government debt policies are analyzed when demand for oil is linear and preferences quadratic. Without prudence, optimal oil extraction is governed by the Hotelling rule and optimal budgetary po...
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| Format: | Working paper |
| Language: | English |
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OxCarre
2009
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