A Useful Economic Law That's Always Wrong

Plus! Covid winners, Covid losers, Apple Tax cut, Zoom Backlash, Information Overload

A mostly useful but always wrong model of natural resource prices is Hotelling’s Rule, which basically states that the optimal depletion rate for a natural resource should be the one that causes price to rise annually at the producer’s discount rate. The intuition is straightforward: if you have some natural resource in the ground, you can either ge…

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