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Capital depreciation and waste accumulation in capital-resource economies

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  • Yamaguchi, Rintaro
  • Ueta, Kazuhiro

Abstract

In this note, 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 aected by how the disuse pattern of the manufactured stock in question is distributed, specifically with forward-looking terms.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 23786.

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Date of creation: 22 Feb 2010
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Handle: RePEc:pra:mprapa:23786

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Keywords: capital depreciation; waste accumulation; capital-resource model; optimal control;

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  1. Kamien, Morton I & Muller, E, 1976. "Optimal Control with Integral State Equations," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 43(3), pages 469-73, October.
  2. 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.
  3. Aronsson, Thomas & Lofgren, Karl-Gustaf, 2008. "Welfare equivalent NNP and habit formation," Economics Letters, Elsevier, vol. 98(1), pages 84-88, January.
  4. Simone Valente, 2005. "Sustainable Development, Renewable Resources and Technological Progress," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 30(1), pages 115-125, January.
  5. 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.
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