Investment Decisions, Future Consumption and Sustainability under Optimal Growth
AbstractIn this paper we derive an exact relationship between the net investment at a given point in time and future consumption plans. Our result is general in the sense that it neither requires a constant rate of time preference nor an exponential discount function. One interpretation of the result is in terms of the willingness to pay for net investments, while another interpretation relates to conditions for sustainability.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 49.
Length: 11 pages
Date of creation: Mar 1995
Date of revision:
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Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
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More information through EDIRC
Ramesy model; welfare measurement; national product;
Find related papers by JEL classification:
- D90 - Microeconomics - - Intertemporal Choice - - - General
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