This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Constant savings rates and quasi-arithmetic population growth under exhaustible resource constraints

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Asheim, Geir B. () (Dept. of Economics, University of Oslo)
Buchholz, Wolfgang () (Department of Economics, University of Regensburg)
Hartwick, John M. () (Queen’s University, Kingston, Ontario)
Mitra, Tapan () (Cornell University, Ithaca, New York)
Withagen, Cees () (Free University, De Boelelaan, Nederland)

Additional information is available for the following registered author(s):

Abstract

In the Dasgupta-Heal-Solow-Stiglitz model of capital accumulation and resource depletion we show the following equivalence: If an efficient path has constant (gross and net of population growth) savings rates, then population growth must be quasi-arithmetic and the path is a maximin or a classical utilitarian optimum. Conversely, if a path is optimal according to maximin or classical utilitarianism (with constant elasticity of marginal utility) under quasiarithmetic population growth, then the (gross and net of population growth) savings rates converge asymptotically to constants.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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.

File URL: http://www.oekonomi.uio.no/memo/memopdf/memo2305.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Oslo University, Department of Economics in its series Memorandum with number 23/2005.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 30 pages
Date of creation: 10 Sep 2005
Date of revision:
Handle: RePEc:hhs:osloec:2005_023

Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Email:
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Rhiana Bergh-Seeley).

Related research
Keywords: Constant savings rate; quasi-arithmetic population growth;

Other versions of this item:

Find related papers by JEL classification:
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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.:
  1. Hartwick, John M, 1977. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," American Economic Review, American Economic Association, vol. 67(5), pages 972-74, December. [Downloadable!] (restricted)
    Other versions:
  2. Geir Asheim & Wolfgang Buchholz & Cees Withagen, 2003. "The Hartwick Rule: Myths and Facts," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(2), pages 129-150, June. [Downloadable!] (restricted)
    Other versions:
  3. Withagen, Cees & Asheim, Geir B. & Buchholz, Wolfgang, 2003. "On the sustainable program in Solow's model," Memorandum 33/2002, Oslo University, Department of Economics. [Downloadable!]
  4. Mitra, Tapan, 2002. "Intertemporal Equity and Efficient Allocation of Resources," Journal of Economic Theory, Elsevier, vol. 107(2), pages 356-376, December. [Downloadable!] (restricted)
  5. Hamilton, Kirk, 1994. "Green adjustments to GDP," Resources Policy, Elsevier, vol. 20(3), pages 155-168, September. [Downloadable!] (restricted)
  6. Mitra, Tapan, 1983. "Limits on Population Growth under Exhaustible Resource Constraints," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(1), pages 155-68, February. [Downloadable!] (restricted)
  7. R. M. Solow, 1973. "Intergenerational Equity and Exhaustable Resources," Working papers 103, Massachusetts Institute of Technology (MIT), Department of Economics.
  8. Kirk Hamilton & John Hartwick, 2005. "Investing exhaustible resource rents and the path of consumption," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 615-621, May. [Downloadable!] (restricted)
  9. Withagen, Cees & B. Asheim, Geir, 1998. "Characterizing sustainability: The converse of Hartwick's rule," Journal of Economic Dynamics and Control, Elsevier, vol. 23(1), pages 159-165, September. [Downloadable!] (restricted)
  10. Geir Asheim, 2004. "Green national accounting with a changing population," Economic Theory, Springer, vol. 23(3), pages 601-619, March. [Downloadable!] (restricted)
    Other versions:
  11. Geir B. Asheim & Wolfgang Buchholz, 2004. "A General Approach to Welfare Measurement through National Income Accounting," Scandinavian Journal of Economics, Blackwell Publishing, vol. 106(2), pages 361-384, 06. [Downloadable!] (restricted)
    Other versions:
  12. Pezzey, John C.V., 2004. "Exact measures of income in a hyperbolic economy," Environment and Development Economics, Cambridge University Press, vol. 9(04), pages 473-484, August. [Downloadable!]
Full references

Cited by:
(explanations, 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.)

  1. Christian Groth & Karl-Josef Koch & Thomas Steger, 2006. "Rethinking the Concept of Long-Run Economic Growth," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  2. Amigues, Jean-Pierre & Moreaux, Michel, 2008. "Efficient and Optimal Capital Accumulation under a Non Renewable Resource Constraint," IDEI Working Papers 51, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  3. AMIGUES Jean-Pierre & MOREAUX Michel, 2008. "Efficient and Optimal Capital Accumulation and Non Renewable Resource Depletion: The Hartwick Rule in a Two Sector Model," Working Papers 08.14.258, LERNA, University of Toulouse. [Downloadable!]
  4. Bazhanov, Andrei, 2007. "The peak of oil extraction and consistency of the government's short- and long-run policies," MPRA Paper 2507, University Library of Munich, Germany. [Downloadable!]
  5. Lucas Bretschger, 2008. "Population growth and natural resource scarcity: long-run development under seemingly unfavourable conditions," Economics working paper series 08/87, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich. [Downloadable!]
  6. Hassan Benchekroun & Cees Withagen, . "Global Dynamics In A Growth Model With An Exhaustible Resource," Departmental Working Papers 2008-01, McGill University, Department of Economics. [Downloadable!]
  7. van der Ploeg, Frederick, 2008. "Why Do Many Resource-Rich Countries Have Negative Genuine Saving? Anticipation of Better Times or Rapacious Rent Seeking," CEPR Discussion Papers 7021, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  8. Bazhanov, Andrei, 2007. "Switching to a sustainable efficient extraction path," MPRA Paper 2976, University Library of Munich, Germany. [Downloadable!]
  9. Bazhanov, Andrei, 2008. "Sustainable growth: Compatibility between criterion and the initial state," MPRA Paper 9914, University Library of Munich, Germany. [Downloadable!]
  10. Bazhanov, Andrei, 2008. "Sustainable growth in a resource-based economy: the extraction-saving relationship," MPRA Paper 12350, University Library of Munich, Germany. [Downloadable!]
  11. Bazhanov, Andrei, 2006. "The peak of oil extraction and a modified maximin principle," MPRA Paper 14775, University Library of Munich, Germany, revised 12 Feb 2007. [Downloadable!]
  12. Christian Groth & Karl-Josef Koch & Thomas M. Steger, 2009. "When economic growth is less than exponential," Volkswirtschaftliche Diskussionsbeitraege 129-09, Universität Siegen, Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht. [Downloadable!]
    Other versions:
  13. Geir B. Asheim, 2005. "Intergenerational Ethics under Resource Constraints," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(III), pages 313-330, September. [Downloadable!]
  14. Bazhanov, Andrei, 2006. "Decreasing of Oil Extraction: Consumption behavior along transition paths," MPRA Paper 469, University Library of Munich, Germany. [Downloadable!]
  15. Growiec, Jakub, 2008. "Knife-edge conditions in the modeling of long-run growth regularities," MPRA Paper 9956, University Library of Munich, Germany. [Downloadable!]
  16. Bazhanov, Andrei, 2008. "Inconsistency between a criterion and the initial conditions," MPRA Paper 6792, University Library of Munich, Germany. [Downloadable!]
  17. Bazhanov, Andrei, 2008. "Maximin-optimal sustainable growth in a resource-based imperfect economy," MPRA Paper 16245, University Library of Munich, Germany, revised 01 Aug 2009. [Downloadable!]
  18. Timothée, Ollivier, 2009. "Is Mozambican Growth Sustainable? A Comprehensive Wealth Accounting Prospect," MPRA Paper 16603, University Library of Munich, Germany. [Downloadable!]
  19. Mitra, Tapan, 2007. "On Competitive Equitable Paths under Exhaustible Resource Constraints: The Case of a Growing Population," Working Papers 07-05, Cornell University, Center for Analytic Economics. [Downloadable!]
  20. Bazhanov, Andrei & Belyaev, Alexander, 2009. "Адекватность Закрытой Модели Для Российской Экономики В Задаче Сравнительного Анализа Энергетической Стра�," MPRA Paper 15109, University Library of Munich, Germany. [Downloadable!]
Statistics
Access and download statistics

Did you know? IDEAS is also providing many rankings, for example of authors and institutions.

This page was last updated on 2009-11-26.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.