Hotelling's Theory

Hotelling's Theory
This theory proposes that owners of non-renewable resources will only produce a supply of their product if it will yield more than instruments available to them in the markets - specifically bonds and other interest-bearing securities. This theory assumes that markets are efficient and that the owners of the non-renewable resources are motivated by profit. Hotelling's theory is used by economists to attempt to predict the price of oil and other nonrenewable resources, based on prevailing interest rates.

The theory states that if oil prices do not rise at the prevailing interest rate, there would be no restrictions on supply. If, conversely, oil prices were expected to increase faster than interest rates, producers would be better off not bringing the oil out of the ground.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Hotelling's lemma — is a result in microeconomics that relates the supply of a good to the profit of the good s producer. It was first shown by Harold Hotelling, and is widely used in the theory of the firm. The lemma is very simple, and can be stated: Let y(p) be a …   Wikipedia

  • Hotelling — Harold Hotelling (* 29. September 1895 in Fulda, Minnesota; † 26. Dezember 1973) war ein US amerikanischer Statistiker und Volkswirt. Hotelling verbrachte den größten Teil seiner Kindheit in Seattle. Nach dem Bachelor in Journalismus im Jahr 1919 …   Deutsch Wikipedia

  • Hotelling's law — Not to be confused with Hotelling s rule. Hotelling s law is an observation in economics that in many markets it is rational for producers to make their products as similar as possible. This is also referred to as the principle of minimum… …   Wikipedia

  • Hotelling-Downs-Modell — Dieser Artikel wurde auf der Koordinationsseite des WiwiWiki Projekts gelistet um die Bearbeitung effektiver gestalten zu können. Bitte beteilige dich an der Diskussion. Das Medianwählermodell dient in der (neuen) politischen Ökonomik (=… …   Deutsch Wikipedia

  • Hotelling — Harold, 1895–1973, amerikanischer Mathematiker, theoretischer Statistiker und Ökonom. Er lehrte an der Columbia University, New York, USA und an der University of North Carolina, USA. H. gilt sowohl im Bereich der mathematischen Statistik als… …   Lexikon der Economics

  • Harold Hotelling — Infobox Scientist name = Harold Hotelling caption = birth date = Birth date|1895|9|29 birth place = Fulda, Minnesota, U.S. death date = death date and age|1973|12|26|1895|9|29 death place = Chapel Hill, North Carolina, U.S. residence = U.S.… …   Wikipedia

  • Harold Hotelling — est un économiste américain, né en 1895 et mort en 1973. Harold Hotelling a écrit peu d articles, mais ses quelques contributions ont été suffisamment remarquées pour en faire un des chefs de file de l école parétienne, suite à la résurrection… …   Wikipédia en Français

  • Harold Hotelling — (* 29. September 1895 in Fulda, Minnesota; † 26. Dezember 1973) war ein US amerikanischer Statistiker und Volkswirt. Hotelling verbrachte den größten Teil seiner Kindheit in Seattle. Nach dem Bachelor in Journalismus im Jahr 1919 beendete er 1921 …   Deutsch Wikipedia

  • Game theory — is a branch of applied mathematics that is used in the social sciences (most notably economics), biology, engineering, political science, computer science (mainly for artificial intelligence), and philosophy. Game theory attempts to… …   Wikipedia

  • New Trade Theory — Economics …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”