tag:blogger.com,1999:blog-8133337349608142588.post7540215359494345408..comments2024-02-28T03:43:57.586-08:00Comments on FET (old posts): You can’t borrow from the future!Cameron Murrayhttp://www.blogger.com/profile/08737859133901303110noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8133337349608142588.post-56757994394406253972013-11-25T15:50:11.206-08:002013-11-25T15:50:11.206-08:00Yes. Funny you should mention that. There is a who...Yes. Funny you should mention that. There is a whole group of researchers in real option (Dixit, Pindyck and others) who actually acknowledge the irreversibility of investment (you can only mine the same coal once) and come up with very different rules by which firms optimise their revenues over time compared to the mainstream models. I will write more about this in the future (I have a paper for review at a top journal on just this topic). Cameron Murrayhttps://www.blogger.com/profile/08737859133901303110noreply@blogger.comtag:blogger.com,1999:blog-8133337349608142588.post-14316733657982724862013-11-25T06:09:30.565-08:002013-11-25T06:09:30.565-08:00Hi, a little confused. You say
>The whole point...Hi, a little confused. You say<br />>The whole point is that future resources don’t exist yet, so they can’t be consumed in the present!<br /><br />To my understanding there is no creation of iron ore or coal. Using it in a wasteful manner may indeed compromise the availability of it in future.<br /><br />No?obakesanhttps://www.blogger.com/profile/13743339737847465926noreply@blogger.comtag:blogger.com,1999:blog-8133337349608142588.post-37898256201368414882013-11-25T04:44:11.849-08:002013-11-25T04:44:11.849-08:00at odds with the thinking of other economists.at odds with the thinking of other economists.peter frasernoreply@blogger.comtag:blogger.com,1999:blog-8133337349608142588.post-66105917532462188692013-11-25T03:01:02.512-08:002013-11-25T03:01:02.512-08:00"doesn't this put you at odds" What ..."doesn't this put you at odds" What do you mean?Cameron Murrayhttps://www.blogger.com/profile/08737859133901303110noreply@blogger.comtag:blogger.com,1999:blog-8133337349608142588.post-28872056810906561852013-11-25T01:54:49.501-08:002013-11-25T01:54:49.501-08:00I agree. Money is only an accounting system - prod...I agree. Money is only an accounting system - production is our wealth. I'm curious, doesn't this put you at odds.peter frasernoreply@blogger.com