The optimal depletion of exhaustible resources: A complete characterization
AbstractAbstract We provide the closed form solution to the Dasgupta-Heal-Solow-Stiglitz (DHSS) model. The DHSS model is based on the seminal articles (Dasgupta and Heal, 1974) and (Solow, 1974) and Stiglitz (1974) and describes an economy with two assets, man-made capital and a nonrenewable resource stock. We explicitly characterize, for such an economy, the dynamics along the optimal trajectory of all the variables in the model and from all possible initial values of the stocks. We use the analytical solution to prove several properties of the optimal consumption path. In particular, we show that the initial consumption under a utilitarian criterion starts below the maximin rate of consumption if and only the resource is abundant enough and that under a utilitarian criterion, it is not necessarily the present generation that benefits most from a windfall of resources.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Resource and Energy Economics.
Volume (Year): 33 (2011)
Issue (Month): 3 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505569
Special functions Exponential integral Exhaustible resources Dasgupta-Heal-Solow-Stiglitz economy;
Other versions of this item:
- Hassan Benchekroun & Cees Withagen, 2010. "The Optimal Depletion Of Exhaustible Resources: A Complete Characterization," Departmental Working Papers 2010-01, McGill University, Department of Economics.
- BENCHEKROUN, Hassan & WITHAGEN, Cees, 2010. "The Optimal Depletion of Exhaustible Resources : A Complete Characterization," Cahiers de recherche 04-2010, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Hassan Benchekroun & Cees Withagen, 2008. "Global Dynamics In A Growth Model With An Exhaustible Resource," Departmental Working Papers 2008-01, McGill University, Department of Economics.
- E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
- Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
- C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- BOUCEKKINE, Raouf & RUIZ-TAMARIT, José Ramon, .
"Special functions for the study of economic dynamics: The case of the Lucas-Uzawa model,"
CORE Discussion Papers RP
-2003, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Boucekkine, R. & Ruiz-Tamarit, J.R., 2008. "Special functions for the study of economic dynamics: The case of the Lucas-Uzawa model," Journal of Mathematical Economics, Elsevier, vol. 44(1), pages 33-54, January.
- Raouf, BOUCEKKINE & José R. , RUIZ-TAMARIT, 2004. "Special functions for the study of economic dynamics : The case of the Lucas-Uzawa model," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2004026, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- BOUCEKKINE, Raouf & RUIZ-TAMARIT, Ramon, 2004. "Special functions for the study of economic dynamics: The case of the Lucas-Uzawa model," CORE Discussion Papers 2004084, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Asheim, Geir B. & Buchholz, Wolfgang & Hartwick, John M. & Mitra, Tapan & Withagen, Cees, 2007.
"Constant savings rates and quasi-arithmetic population growth under exhaustible resource constraints,"
Journal of Environmental Economics and Management,
Elsevier, vol. 53(2), pages 213-229, March.
- Geir B. Asheim & Wolfgang Buchholz & John M. Hartwick & Tapan Mitra & Cees A. Withagen, 2005. "Constant Savings Rates and Quasi-Arithmetic Population Growth under Exhaustible Resource Constraints," CESifo Working Paper Series 1573, CESifo Group Munich.
- Asheim, Geir B. & Buchholz, Wolfgang & Hartwick, John M. & Mitra, Tapan & Withagen, Cees, 2005. "Constant savings rates and quasi-arithmetic population growth under exhaustible resource constraints," Memorandum 23/2005, Oslo University, Department of Economics.
- Asheim, Geir B, 1994. " Net National Product as an Indicator of Sustainability," Scandinavian Journal of Economics, Wiley Blackwell, vol. 96(2), pages 257-65.
- John Hartwick & Ngo Van Long & Huilan Tian, 2003. "On the Peaking of Consumption with Exhaustible Resources and Zero Net Investment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(3), pages 235-244, March.
- BOUCEKKINE, Raouf & MARTINEZ, Blanca & RUIZ-TAMARIT, José Ramon, .
"Note on global dynamics and imbalance effects in the Lucas-Uzawa model,"
CORE Discussion Papers RP
-2091, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Raouf Boucekkine & Blanca Martínez & José Ramón Ruiz-Tamarit, 2008. "Note on global dynamics and imbalance effects in the Lucas-Uzawa model," International Journal of Economic Theory, The International Society for Economic Theory, vol. 4(4), pages 503-518.
- Raouf Boucekkine & B. Martínez & J. R. Ruiz-Tamarit, 2007. "A note on global dynamics and imbalance effects in the Lucas-Uzawa model," Working Papers 2007_26, Business School - Economics, University of Glasgow.
- BOUCEKKINE, Raouf & MARTINEZ, Blanca & RUIZ-TAMARIT, Jose R., 2007.
"Global dynamics and imbalance effects in the Lucas-Uzawa model: further results,"
CORE Discussion Papers
2007025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Rauf, BOUCEKKINE & Blanca, MARTINEZ & Jose R., RUIZ-TAMARIT, 2007. "Global dynamics and imbalance effects in the Lucas Uzawa model : further results," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2007018, Université catholique de Louvain, Département des Sciences Economiques.
- Pezzey, John C V & Withagen, Cees A, 1998. " The Rise, Fall and Sustainability of Capital-Resource Economies," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(2), pages 513-27, June.
RePEc Biblio mentionsAs found on the RePEc Biblio, the curated bibliography for Economics:CitEc Project, subscribe to its RSS feed for this item.
- André, Francisco J. & Smulders, Sjak, 2014.
"Fueling growth when oil peaks: Directed technological change and the limits to efficiency,"
European Economic Review,
Elsevier, vol. 69(C), pages 18-39.
- Francisco J. André & Sjak Smulders, 2012. "Fueling Growth when Oil Peaks: Directed Technological Change and the Limits to Efficiency," CESifo Working Paper Series 3977, CESifo Group Munich.
- Sjak Smulders & Michael Toman & Cees Withagen, 2014. "Growth Theory and "Green Growth"," OxCarre Working Papers 135, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
- Bormotov, Michael, 2010. "Modern Knowledge Based Economy: all-factors endogenous growth model and total investment allocation," MPRA Paper 19932, University Library of Munich, Germany.
- Neustroev, Dmitry, 2013. "The Uzawa-Lucas Growth Model with Natural Resources," MPRA Paper 52937, University Library of Munich, Germany.
- Roy Cerqueti & Raffaella Coppier & Gustavo Piga, 2011.
"Corruption, Growth and Ethnic Fractionalization: a Theoretical Model,"
CEIS Research Paper
216, Tor Vergata University, CEIS, revised 08 Nov 2011.
- Roy Cerqueti & Raffaella Coppier & Gustavo Piga, 2012. "Corruption, growth and ethnic fractionalization: a theoretical model," Journal of Economics, Springer, vol. 106(2), pages 153-181, June.
- J. R. Ruiz-Tamarit & M. Ventura-Marco, .
"Solution to Non-Linear MHDS arising from Optimal Growth Problems,"
- Ruiz-Tamarit, J.R. & Ventura-Marco, M., 2011. "Solution to nonlinear MHDS arising from optimal growth problems," Mathematical Social Sciences, Elsevier, vol. 61(2), pages 86-96, March.
- Smulders, Sjak & Withagen, Cees, 2012. "Green growth -- lessons from growth theory," Policy Research Working Paper Series 6230, The World Bank.
- Bazhanov, Andrei, 2008. "Sustainable growth in a resource-based economy: the extraction-saving relationship," MPRA Paper 12350, University Library of Munich, Germany.
- Robert D. Cairns, 2011. "Accounting for Sustainability: A Dissenting Opinion," Sustainability, MDPI, Open Access Journal, vol. 3(9), pages 1341-1356, August.
- Karolina Ryszka, 2013. "Resource Extraction in a Political Economy Framework," Tinbergen Institute Discussion Papers 13-094/VIII, Tinbergen Institute.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.