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Critique of the Corn–Guano Model
Author(s) -
Schefold Bertram
Publication year - 2001
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/1467-999x.00123
Subject(s) - guano , economics , representation (politics) , context (archaeology) , simple (philosophy) , resource (disambiguation) , mathematical economics , econometrics , face (sociological concept) , natural resource , neoclassical economics , microeconomics , computer science , ecology , sociology , politics , geology , biology , epistemology , law , paleontology , philosophy , computer network , social science , political science
It is argued that the corn–guano model proposed by Bidard and Erreygers is too simple as a representation of Hotelling's theory because it does not reflect the distinction between the resource in situ and the extracted resource. The claim to have transposed the representation of Hotelling's theory from the neoclassical to a classical context is not warranted because normal prices are not used. The model is elegant in its simiplicity but it does not face the relevant problems of exhaustible resources posed by the real world.