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Capital depreciation and waste accumulation in capital-resource economies

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  • R. Yamaguchi
  • K. Ueta

Abstract

In this article, we investigate how the depreciation of a manufactured stock and the related accumulation of a waste stock can alter the optimal path of the capital-resource economy. It is shown that the optimal consumption path is affected by how the disuse pattern of the manufactured stock in question is distributed, specifically with forward-looking terms.

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File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/13504851003761814&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 18 (2011)
Issue (Month): 6 ()
Pages: 519-522

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Handle: RePEc:taf:apeclt:v:18:y:2011:i:6:p:519-522

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  1. Kamien, Morton I & Muller, E, 1976. "Optimal Control with Integral State Equations," Review of Economic Studies, Wiley Blackwell, vol. 43(3), pages 469-73, October.
  2. Aronsson, Thomas & Lofgren, Karl-Gustaf, 2008. "Welfare equivalent NNP and habit formation," Economics Letters, Elsevier, vol. 98(1), pages 84-88, January.
  3. Kleijn, Rene & Huele, Ruben & van der Voet, Ester, 2000. "Dynamic substance flow analysis: the delaying mechanism of stocks, with the case of PVC in Sweden," Ecological Economics, Elsevier, vol. 32(2), pages 241-254, February.
  4. Thomas Eichner & Marco Runkel, 2005. "Efficient Policies for Green Design in a Vintage Durable Good Model," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 30(3), pages 259-278, 03.
  5. Simone Valente, 2004. "Sustainable Development: Renewable Resources and Technological Progress," CEIS Research Paper 54, Tor Vergata University, CEIS.
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