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Topic: Hotelling rent

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	Reconciling Gray and Hotelling: lessons from early exhaustible resource economics.(Harold Hotelling, Lewis Cecil Gray ... (Site not responding. Last check: 2007-10-26)
		The lack of empirical support for Hotelling's r-percent rule, introduced in 1931, and recent suggestions that industry behavior may not be reducible to firm behaviors are the primary motivating factors for examining the relative value of Gray's contribution to the field of exhaustible resource economics relative to Hotelling's contribution.
		Hotelling's r-percent rule states that during a period of continuous extraction, the price of a resource over time would follow an equilibrium path equivalent to the value society places on the remaining resource stock.
		Hotelling's theoretical framework had a major impact in the early 1970s, about 40 years after its publication, at a time when economists were focused on global resource issues and the management of natural resources was on the verge of becoming a full-fledged research field (for example, see Meadows et al.
	www.encyclopedia.com /doc/1G1-152759649.html (6521 words)

	Hotelling's rule
		The maximum rent is also known as Hotelling rent or scarcity rent and is the maximum rent that could be obtained while emptying the stock resource.
		Hotelling's result shows that in an efficient exploitation of a non-renewable and non-augmentable resource, the percentage change in net-price per unit of time should equal the discount rate in order to maximise the present value of the resource capital over the extraction period.
		The economic rent obtained is an abnormal rent, often referred to as resource rent, since it generates from a situation where the resource owner has open access to the resource for free.
	www.wordinfo.co.za /wiki/Hotelling's_rule (399 words)

	Useful Information for Tenants
		In a lease, the term "fair market rent" is defined in a number of different ways and is subject to extensive negotiation and interpretation.
		Ground rent should not be charged back to the tenant as an operating expense.
		The space pocket is typically fully improved at the commencement of the lease and no rent is due on the pocketed area until the earlier of "actual use" or a specified future date.
	www.alexsummer.com /useful.htm (3296 words)

	[No title]
		Base Rent - A specific amount used either as a minimum rent in a lease (retail) which uses a percentage of sales or overage for additional rent or sets a base onto which is added expenses and taxes in a net lease or increases in those items in a fully serviced lease.
		Free Rent - A concession granted by a landlord to a tenant whereby the tenant is excused from paying rent for a stated period during the lease term.
		The space pocket is typically fully improved at the commencement of the lease and no rent is due on the pocketed area until the earlier of "actual use" or a specified future date.
	www.oxfordcres.com /glossary.asp (3473 words)

	Commercial Real Estate Terminology
		Base Rent - A specific amount used either as a minimum rent in a lease (retail) which uses a percentage of sales or overage for additional rent or sets a base onto which is added expenses and taxes in a net lease or increases in those items in a fully serviced lease.
		Free Rent - A concession granted by a landlord to a tenant whereby the tenant is excused from paying rent for a stated period during the lease term.
		Hotelling - An alternative workspace concept where rather than having an assigned exclusive workspace, an employee accesses one space, perhaps being one of many such spaces in common with others on an as needed basis, and otherwise works outside of the office.
	www.officespace.com /Terms.cfm (3687 words)

	2002 World Congress of Environmental and Resource Economists (Site not responding. Last check: 2007-10-26)
		The paper tests Hotelling's prediction that scarcity rent for a nonrenewable resource will rise at the rate of discount in a market equilibrium.
		The most significant of these was that scarcity rent was not observable in any of the existing studies.
		The principal advantage of using these data is that a measure of scarcity rent is directly observable in the form of stumpage price bids in timber auctions.
	weber.ucsd.edu /~carsonvs/abstracts/2wcere_226.html (204 words)

	Accounting for Subsoil Mineral Resources
		Again employing the Hotelling valuation approach, the total value of the mineral asset (including the value of the associated capital) is calculated as the per unit net revenue times the total quantity of reserves.
		It appears, then, that with current rent method I, the upward bias in measurement of total asset value due to use of the Hotelling valuation principle is outweighed by an excessive deduction for associated capital.
		The current rent and discounted present value valuation approaches used by BEA to calculate resource stock and flow values are similar to those employed in other countries, with current rent method I being used most widely.
	www.bea.gov /scb/account_articles/national/0200srm/MAINTEXT.HTM (16026 words)

	[No title] (Site not responding. Last check: 2007-10-26)
		Add-on Factor: Rent for spaces is shared by all of the tenants in a building in the form of an "add-on" to the rent that is charged for the actual useable space a tenant occupies.
		Rent Abatement: Under a rent abatement, the landlord agrees to give tenants a discount on rent for a specified period of time in order to entice prospective tenants in a weak market.
		Rent Adjustment: Any lease provisions that provide for future increases in rental obligations, such as the pass through of future increases in real estate taxes and operating expenses, fixed rental increases and rental increases due cost of living indexes.
	www.realfacilities.com /glossary.shtml (5810 words)

	Land (Economics) - Karr.net (Site not responding. Last check: 2007-10-26)
		In classical economics it is considered one of three factors of production (along with capital and labor).
		Income derived from ownership or control of natural resources is often referred to as rent.
		And although land (especially in the form of, e.g., mineral deposits) must first be discovered in order to have value or be put to use, it is generally conceded that the fruits of scientific discoveries, whether of natural laws or of mineral deposits, cannot rightly be monopolized for purposes of private economic rent capture.
	www.plushjobs.com /encyclopedia/Land_(economics) (324 words)

	Rent Automobile (Site not responding. Last check: 2007-10-26)
		Kumho Rent A Car - Kumho Rent A Car Co, Ltd. (hangul:ê¸í¸ë í°ì¹´) is an automobile rental in automotive company.
		Rent a Moto and Rent a Car - Rent a Moto and Rent a Car Find out about scooters and automobiles for rent from offices in Messaria and Fira.
		Hotelling rent - Hotelling rent is a rent caused by the limited supply of nonrenewable resources that deplete intertemporally.
	carparts.vvvvvv3.com /rentautomobile.html (784 words)

	Survey of Current Business: Accounting for Subsoil Mineral Resources - Statistical Data Included
		One of the difficulties with this approach is that the Hotelling valuation principle tends to provide a systematic overvaluation of reserves, the reason for which is discussed in a later section.
		Current Rent Method II Current rent method II is virtually identical to current rent method I. The only difference is in the method of adjusting for associated capital.
		Again employing the Hotelling valuation approach, the total value of the mineral asset (including the value of the associated capital) is calculated as the per unit net revenue times the total quantity of reserves.
	www.findarticles.com /p/articles/mi_m3SUR/is_2_80/ai_62290093/pg_4 (1280 words)

	eBay mutes iTunes song auction \| CNET News.com
		Web developer George Hotelling had put the song up for auction Tuesday evening, hoping to highlight the problem.
		Hotelling said he has not contacted Apple or heard from the company since seeking to auction the song, the Devin Vasquez remake of Frankie Smith's song "Double Dutch Bus."
		Hotelling said he received a notice from eBay on Thursday that it was shutting down the auction for violating its downloadable media policy, which "prohibits the listing of items or products to be delivered electronically through the Internet."
	news.com.com /2100-1027_3-5071566.html (932 words)

	Active Skim View of: 3 Accounting for Subsoil Mineral Resources
		It appears, then, that with current ' + 'rent method I, the upward bias in measurement of total asset value due to use of the Hotelling valuation principle is outweighed by an excessive deduction ' + 'for associated capital.
		The current rent and discounted present value valuation ' + 'approaches used by BEA to calculate resource stock and flow values are similar to those employed in other countries, with current rent method I being used ' + 'most widely.
		In the case of reserves, market value ' + 'may reflect Hotelling rent, Ricardian rent, and option value.4 In the case of mineral resources other than reserves, a positive market value is due solely ' + 'to their option value.
	www.nap.edu /nap-cgi/skimit.cgi?isbn=0309071518&chap=59-105 (11928 words)

	Estimating Timber Depreciation in the Brazilian Amazon
		These natural resource rents arise from heterogeneity in land quality (in this case, differences in the quality of natural resources) and are not related to time.
		The dynamic component of the total rent, the scarcity or Hotelling rent, is related to the characteristics of exhaustible resources.
		These rents generated by a natural resource are closely related to the concept of user cost.
	www.fao.org /DOCREP/005/AB601E/AB601E06.htm (1467 words)

	The Oil Drum \| The Tragic Consequences of the High Discounting of Oil Extraction (Site not responding. Last check: 2007-10-26)
		A final section will defend the hypothesis that the scarcity rent for oil is zero or close to it because the recoverable reserves base is percieved as being inexhaustible due to unwarranted assumptions about reserves growth or the existence of perfect substitutes.
		In fact, the suspicious OPEC reserves increases that took place in the 1980's is cited as a possible example and Kronenberg notes that resource (both national and state-run) owners have clear incentives to systematically over-estimate their remaining reserves which, in turn, leads to serious market failures.
		This discordance between the compelling logic of the Hotelling model and the observed data means that the conventional oil resource is not being treated as finite and non-renewable.
	www.theoildrum.com /story/2006/10/21/105241/70 (13310 words)

	Nat' Academies Press, Nature's Numbers: Expanding the National Economic Accounts to Include the Environment (1999)
		As noted earlier, current rent methods I and II calculate total asset values based on the Hotelling valuation principle, which assumes that producers face no production constraints and that the net price rises at the rate of interest.
		The Hotelling principle is used as a valuation tool because of its extreme simplicity; yet, as discussed above, it has been shown both theoretically and empirically to substantially overvalue mineral reserves.
		Because of the potential for overvaluation using the Hotelling valuation principle, BEA uses the NPV method to adjust the stock estimates from current rent method II downward.
	www.nap.edu /openbook/0309071518/html/89.html (685 words)

	Telecommuting
		Consider that rents for commercial office space continues to escalate while the cost of technology continues to fall.
		On the other hand, you have some employees in a prestigious, high rent, building in the central business district, with large offices, who are mainly out calling on clients and bring them in once in a while for a meeting.
		Among some of the alternatives besides the conventional "work at home" scenario are: Partial telecommuting, hotelling, establishing satellite offices just for meetings for the sales force.
	www.risk-metric.com /telecommuting.htm (601 words)

	Estimating Timber Depreciation in the Brazilian Amazon
		Hotelling rent (HR) is defined as the rent that exists on the marginal quantity of an exhaustible resource (price minus marginal cost) and it is considered a measure of the intertemporal scarcity of that resource.
		This rent exists because the resource is exhaustible and consequently, the owners of the resource extract less than the amount that would equate marginal revenue to marginal cost.
		He equates the finite stream of rents earned by a resource to an annuity X earned forever, which can be obtained by selling the mine and depositing the value of the mine (V) in a bank account.
	www.fao.org /DOCREP/005/AB601E/AB601E05.htm (2490 words)

	Office Hotelling office for rent in Turin, Piedmont, Italy
		If in a worker day the 50% of the office personnel may be out in the field, rather than have 20 offices, you have 10 or 5, or you use theme just the time you need.
		The centre, offers different kind of workspaces that can be booked for a few hours or months and configured, according to the different requirements, as flexible and modular 'virtual office'.
		The office spaces we propose are in a renewed 3 floors building, in a central area of Turin, (Via Bogetto/Via San Donato) with reception service, lift, parking.
	www.northwestway.it /francese/ospitalita/torino/hotelling/hotelling.php (288 words)

	Pricing Resources
		In a Hotelling sense this indicates decreasing scarcity since low cost resources normally would be used first and quantities of extraction normally would decrease over time.
		The main reason for the trend being opposite to Hotelling characteristics is usually thought to be due to technological innovation.
		In the Hotelling model, there is perfect information about the backstop price, the quantity of the resource, the demand for the resource, and the cost of extracting the resource.
	www.mnforsustain.org /energy_pricing_resources_reynolds.htm (6911 words)

	Name _______________________________
		According to the Hotelling rule, when the marginal cost of extraction (MEC) of a resource is zero, its price (P) in the efficient path of extraction with no unanticipated new findings and no technological changes would
		When MEC increases with depletion of stock, the rent of in-situ resource _________ over time in the efficient path of extraction.
		According to the Hotelling model, resource prices generally _______ over time and only temporarily may _______ with unanticipated changes in technology and reserves.
	www.colorado.edu /Economics/vjcourses/resource/ex2fl00.html (1178 words)

	Future demand for oil creates something called a Hotelling Rent for current owners of oil. (Site not responding. Last check: 2007-10-26)
		For a given barrel of oil, the Hotelling Rent (a.k.a.
		Scarcity Rent) is defined to be (p - mc).
		The dynamically efficient depletion of a nonrenewable, nonrecyclable natural resource occurs when the resource is allocated so that the PDV of Hotelling Rents are equalized over time.
	www.humboldt.edu /~envecon/ppt/423/unit4b/tsld003.htm (91 words)

	Non-renewable resources at AllExperts
		Hotelling's rule is a 1931 economic model of non-renewable resource management by Harold Hotelling.
		It shows that efficient exploitation of a nonrenewable and nonaugmentable resource would, under otherwise stable economic conditions, lead to a gradual depletion of the resource.
		The rule states that this would lead to a net price or "Hotelling rent" for it that rose annually at a rate equal to the rate of interest, reflecting the increasing scarcity of the resource.
	en.allexperts.com /e/n/no/non-renewable_resources.htm (784 words)

	Economics, the Environment, and Sustainability
		Suppose that demand in each of two periods is given by P = 100 - 2Q, that marginal extraction cost for a nonrenewable, nonrecyclable resource is $10, that the discount rate is 10 percent, that the resource market is competitive, and that 90 units of the resource are available for consumption.
		Derive the marginal Hotelling rent for period 0 for the dynamically efficient solution to the problem above.
		Thus the PDV of marginal Hotelling rent [PDV (P-mc)] = 0, and this is the dynamically efficient solution.
	www.humboldt.edu /~storage/sh2/envecon/econ_423/ch5-10f97.html (921 words)

	SSRN-A Test of the Hotelling Rule Using Old-Growth Timber Data by John Livernois, Henry Thille, Xianqiang Zhang
		We perform the test using data for old-growth timber, a resource that is effectively nonrenewable.
		In contrast to previous studies, for this resource a measure of scarcity rent is directly observable in the form of stumpage price bids in timber auctions.
		The modified Hotelling rule that we derive is not rejected in several of our specifications.
	papers.ssrn.com /sol3/papers.cfm?abstract_id=877355 (295 words)

	Sustainability
		He cites a theoretical investment model of John Hartwick's in which sustainability is guaranteed as long as investment at least match depreciation, including resource depreciation measured as the resource rents extracted from competitive resource markets.
		In the case of exhaustible resources, the correct valuation of a unit of resource depletion is the resource owner's marginal user cost or Hotelling rent, i.e., the market price minus the marginal cost of extraction.
		Unfortunately, it is often difficult to calculate resource rents, particularly where marginal costs diverge from average costs.
	www.udel.edu /johnmack/frec444/444lec08a.html (1086 words)

	Economics 290 Quiz 1 September 2006
		Hartwick’s rule states that, to keep consumption sustainable, rents from resource extraction, specifically “Total Hotelling Rent”, should be invested in capital.
		Total Hotelling Rent = (P-MC) R = $70 x 100,000 = $7, 000,000.
		The 7 million is Total Hotelling Rent needed to make up for declining resource stocks.
	qed.econ.queensu.ca /pub/faculty/hagemana/econ290/0906solutions.htm (3487 words)

	Peak Oil, Oil Prices and Hotellings Scarcity Rent - Debunkers
		As Dave nicely explains, the traditional Hotelling model reasons that market forces will cause there to be a "scarcity rent" incorporated in the price of an exhaustible resource.
		Note also that Hamilton isn't saying we can tell if this scarcity rent is part of the price run up right now, he was somewhat careful to note that in the next five years we'd probably know the answer with a fair degree of certainty.
		Basically, think of it this way, if prices don't come down much in the next year or so, then it seems plausible to conclude that Hotelling's theory is probably working and that there is a scarcity rent component to the price of oil.
	www.debunkers.org /ubb/Forum4/HTML/000378.html (3059 words)

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