Overcoming the Natural Resource Constraint Through Dedicated R&D Effort with Heterogenous Labor Supply
AbstractThe effective labor possibility frontier (ELPF) is defined as the set of statically efficient allocations of labor imputs in the competing tasks of production and R&D. It summaries the labor scarcity constraint. We show that the dynamically efficient paths of R&D, resource extraction and consumption depend on the shape of the ELPF, while their steady state levels do not. In the case of an initial low endowment of resources, the transition to the stationary state is characterized by lower R&D effort, slower growth of per-capita consumption and a longer transition when labor is relatively specialized than when it is more flexible. We analyse policy options for modifying the shape of the ELPF, such as increasing the size of the labor force, subsiding higher education or lifelong learning.
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.
Bibliographic InfoPaper provided by LERNA, University of Toulouse in its series LERNA Working Papers with number 06.22.215.
Date of creation: Aug 2006
Date of revision:
Other versions of this item:
- Jean-Pierre Amigues & Michel Moreaux & Francesco Ricci, 2006. "Overcoming the natural resource constraint through dedicated R&D effort with heterogenous labor supply," THEMA Working Papers 2006-16, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
- Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
- I20 - Health, Education, and Welfare - - Education - - - General
- J00 - Labor and Demographic Economics - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-02 (All new papers)
- NEP-ENE-2007-09-02 (Energy Economics)
- NEP-ENV-2007-09-02 (Environmental Economics)
- NEP-INO-2007-09-02 (Innovation)
- NEP-IPR-2007-09-02 (Intellectual Property Rights)
- NEP-MIC-2007-09-02 (Microeconomics)
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.:
- Jean-Pierre Amigues & André Grimaud & Michel Moreaux, 2004. "Ressources non-renouvelables, impatience et effort optimal de recherche-développement," Revue d'économie politique, Dalloz, vol. 0(3), pages 393-416.
- Kamien, Morton I & Schwartz, Nancy L, 1978. "Optimal Exhaustible Resource Depletion with Endogenous Technical Change," Review of Economic Studies, Wiley Blackwell, vol. 45(1), pages 179-96, February.
- Aghion, P. & Howitt, P., 1990.
"A Model Of Growth Through Creative Destruction,"
DELTA Working Papers
90-12, DELTA (Ecole normale supérieure).
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers 8904, University of Western Ontario, Department of Economics.
- Davison, R, 1978. "Optimal Depletion of an Exhaustible Resource with Research and Development towards an Alternative Technology," Review of Economic Studies, Wiley Blackwell, vol. 45(2), pages 355-67, June.
- Smulders, Sjak & de Nooij, Michiel, 2003.
"The impact of energy conservation on technology and economic growth,"
Resource and Energy Economics,
Elsevier, vol. 25(1), pages 59-79, February.
- Smulders, J.A. & Nooij, M. de, 2003. "The impact of energy conservation on technology and economic growth," Open Access publications from Tilburg University urn:nbn:nl:ui:12-123121, Tilburg University.
- Paul Romer, 1991.
"Endogenous Technological Change,"
NBER Working Papers
3210, National Bureau of Economic Research, Inc.
- Paul M. Romer, 2001.
"Should the Government Subsidize Supply or Demand in the Market for Scientists and Engineers?,"
in: Innovation Policy and the Economy, Volume 1, pages 221-252
National Bureau of Economic Research, Inc.
- Paul M. Romer, 2000. "Should the Government Subsidize Supply or Demand in the Market for Scientists and Engineers?," NBER Working Papers 7723, National Bureau of Economic Research, Inc.
- 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.
- John Hartwick, 1976. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," Working Papers 220, Queen's University, Department of Economics.
- Poul Schou, 2000. "Polluting Non-Renewable Resources and Growth," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 16(2), pages 211-227, June.
- Tsur, Yacov & Zemel, Amos, 2005. "Scarcity, growth and R&D," Journal of Environmental Economics and Management, Elsevier, vol. 49(3), pages 484-499, May.
- Grimaud, Andre & Rouge, Luc, 2003. "Non-renewable resources and growth with vertical innovations: optimum, equilibrium and economic policies," Journal of Environmental Economics and Management, Elsevier, vol. 45(2, Supple), pages 433-453, March.
- van Zon, Adriaan & Yetkiner, I. Hakan, 2003. "An endogenous growth model with embodied energy-saving technical change," Resource and Energy Economics, Elsevier, vol. 25(1), pages 81-103, February.
- Jean-Pierre Amigues & Ngo Van Long & Michel Moreaux, 2004. "Overcoming Natural Resource Constraints Through R&D," CIRANO Working Papers 2004s-14, CIRANO.
- Brunner, Martin & Strulik, Holger, 2002.
"Solution of perfect foresight saddlepoint problems: a simple method and applications,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 26(5), pages 737-753, May.
- Martin Brunner & Holger Strulik, 2002. "Code for "Solution of Perfect Foresight Sattlepoint Problems: A Simple Method and Applications"," QM&RBC Codes 93, Quantitative Macroeconomics & Real Business Cycles.
- Jakub, GROWIEC & Ingmar, SCHUMACHER, 2006.
"On Technical Change in the Elasticities of Resource Inputs,"
Discussion Papers (ECON - DÃ©partement des Sciences Economiques)
2006031, Université catholique de Louvain, Département des Sciences Economiques.
- Growiec, Jakub & Schumacher, Ingmar, 2008. "On technical change in the elasticities of resource inputs," Resources Policy, Elsevier, vol. 33(4), pages 210-221, December.
- GROWIEC, Jakub & SCHUMACHER, Ingmar, 2006. "On technical change in the elasticities of resource inputs," CORE Discussion Papers 2006063, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maxime MARTY).
If references are entirely missing, you can add them using this form.