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Sustained Development of a Population and a Resource

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  • Tian, Huilan
  • Cairns, Robert D.

Abstract

The dynamics of a population and a resource are investigated in a maximin model based on Brander and Taylor’s stylization of Easter Island, in order to consider the sustainability of the society represented. There are continua of both regular and non-regular maximin solutions, the type depending on the initial conditions. A non-regular maximin steady state corresponds with the steady state in Brander and Taylor’s model. All solutions are time consistent and Pareto optimal. For the regular paths, a partial analytic characterization and a simulation are provided. The non-regular paths involve two regular sections and one degenerate solution in which the maximin constraint is not effective. The high degree of mathematical subtlety of the solution to this ostensibly simple problem calls into question the likelihood of a planner’s being able to devise and follow a program of efficient, sustained development.

Suggested Citation

  • Tian, Huilan & Cairns, Robert D., 2006. "Sustained Development of a Population and a Resource," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139910, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare06:139910
    DOI: 10.22004/ag.econ.139910
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    References listed on IDEAS

    as
    1. Brander, James A & Taylor, M Scott, 1998. "The Simple Economics of Easter Island: A Ricardo-Malthus Model of Renewable Resource Use," American Economic Review, American Economic Association, vol. 88(1), pages 119-138, March.
    2. R. M. Solow, 1974. "Intergenerational Equity and Exhaustible Resources," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 29-45.
    3. Léonard,Daniel & Long,Ngo van, 1992. "Optimal Control Theory and Static Optimization in Economics," Cambridge Books, Cambridge University Press, number 9780521331586.
    4. Hartwick, John M, 1977. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," American Economic Review, American Economic Association, vol. 67(5), pages 972-974, December.
    Full references (including those not matched with items on IDEAS)

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