Trading in exhaustible resources in the presence of conversion costs a general equilibrium approach

Chris Elbers*, Cees Withagen

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review


We survey the literature on the general equilibrium approach to trade in exhaustible resources and present a model in which conversion costs are incorporated and in which the usual balance of payments condition is relaxed. It is found that in many cases the problem of dynamic inconsistency will arise.

Original languageEnglish
Pages (from-to)197-209
Number of pages13
JournalJournal of Economic Dynamics and Control
Issue number2
Publication statusPublished - 1984

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