Economic Theory And Ocean Transportation of Oil
Economic Theory And Ocean Transportation of Oil
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The high rates reflect the revenue (delivered price of oil) to be derived through transportation activities, in the short run, and the low rates reflect the refusal price of the then marginal vessels which operate in the spot market, again a short-run notion. That is the reason why we have feast and 4 For an extensive discussion of these issues see: Zannetos, Zenon S. , The Theory of Oil Tankship Rates, M. I. T. Press, 1966, pp. 6-29, 42-49, 77-80, and 102-105.
To be exact, the long-run equilib...rium rate may be stable but any disequilibrating adjustments will send the rates to either very high or very low rates. It all depends upon the range, if any, of the demand schedule over which inelastic expectations and strictly static forces hold, and on the accidental balance between supply and demand at exactly such a normal long-run rate, as to whether such an equilibrium may be observed.
The traditional assumptions of economic theory dictate this. See Hicks, op. Cit . , p. 251 and J. W. Baumol, Economic D3niamics, The Macmillan Company, New York, 1957, p.
What to read after Economic Theory And Ocean Transportation of Oil?
You can find similar books in the "Read Also" column, or choose other free books by Zenon Soteriou Zannetos to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
The high rates reflect the revenue (delivered price of oil) to be derived through transportation activities, in the short run, and the low rates reflect the refusal price of the then marginal vessels which operate in the spot market, again a short-run notion. That is the reason why we have feast and 4 For an extensive discussion of these issues see: Zannetos, Zenon S. , The Theory of Oil Tankship Rates, M. I. T. Press, 1966, pp. 6-29, 42-49, 77-80, and 102-105.
To be exact, the long-run equilib...rium rate may be stable but any disequilibrating adjustments will send the rates to either very high or very low rates. It all depends upon the range, if any, of the demand schedule over which inelastic expectations and strictly static forces hold, and on the accidental balance between supply and demand at exactly such a normal long-run rate, as to whether such an equilibrium may be observed.
The traditional assumptions of economic theory dictate this. See Hicks, op. Cit . , p. 251 and J. W. Baumol, Economic D3niamics, The Macmillan Company, New York, 1957, p.
What to read after Economic Theory And Ocean Transportation of Oil?
You can find similar books in the "Read Also" column, or choose other free books by Zenon Soteriou Zannetos to read onlineMoreLess
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