| Abstract: | Using variational differential equations, a systematic qualitative analysis is carried out for the competitive nonrenewable resource extracting firm. The parameters of interest are the output price, variable input price, discount rate, lease length, initial resource stock, and various tax rates. The effects of changes in these parameters on the entire optimal time paths of the current shadow value of the stock, the resource stock, and the extraction rate are characterized in the perturbed phase plane. |
