Abstract
| Language | English |
|---|---|
| Pages | 2164-2182 |
| Journal | Journal of Economic Theory |
| Volume | 148 |
| Issue number | 5 |
| DOIs | |
| State | Published - 2013 |
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Characterizing the sustainable problem in an exhaustible resource model. / Mitra, T.; Asheim, G.; Buchholz, W.; Withagen, C.A.A.M.
In: Journal of Economic Theory, Vol. 148, No. 5, 2013, p. 2164-2182.Research output: Contribution to journal › Article
TY - JOUR
T1 - Characterizing the sustainable problem in an exhaustible resource model
AU - Mitra,T.
AU - Asheim,G.
AU - Buchholz,W.
AU - Withagen,C.A.A.M.
PY - 2013
Y1 - 2013
N2 - We provide a general condition under which consumption can be sustained indefinitely bounded away from zero in the continuous time Dasgupta-Heal-Solow-Stiglitz model, by letting augmentable capital substitute for a non-renewable resource. The assumptions made on the production function are mild, thus generalizing previous work. By showing that Hartwick's rule minimizes the required resource input per unit of capital accumulation, and integrating the required resource input with respect to capital, we obtain a complete technological characterization without reference to the time path. We also use the characterization result to establish general existence of a maximin path. © 2013 Elsevier Inc.
AB - We provide a general condition under which consumption can be sustained indefinitely bounded away from zero in the continuous time Dasgupta-Heal-Solow-Stiglitz model, by letting augmentable capital substitute for a non-renewable resource. The assumptions made on the production function are mild, thus generalizing previous work. By showing that Hartwick's rule minimizes the required resource input per unit of capital accumulation, and integrating the required resource input with respect to capital, we obtain a complete technological characterization without reference to the time path. We also use the characterization result to establish general existence of a maximin path. © 2013 Elsevier Inc.
U2 - 10.1016/j.jet.2013.04.019
DO - 10.1016/j.jet.2013.04.019
M3 - Article
VL - 148
SP - 2164
EP - 2182
JO - Journal of Economic Theory
T2 - Journal of Economic Theory
JF - Journal of Economic Theory
SN - 0022-0531
IS - 5
ER -