Advanced Search
MyIDEAS: Login

Growth Constrained by Exhaustible Resources: A Creative Destruction Approach

Contents:

Author Info

  • Farhad Nili

Abstract

This paper is about how the constraints imposed by natural resource scarcity affects economic growth and its sustainability. We extend the creative destruction model of Aghion and Howitt(1998, ch.5) to study its transitional dynamics. This extension allows us to describe the dynamics of the economy on the stable saddle path and its rate of convergence toward the steady state. Moreover we show situation in which even in the presence of sustainability condition, suggested by Aghion and Howitt, it is optimal for consumption to display negative growth rate on the transition path for a finite period. The conditions for uniqueness of the steady state are also defined. Under plausible assumptions the closed forms of the fundamentals of the model in the steady state is determined. We study the stability of the model around the steady state and analyse the nonlinear system of differential equations, describing the dynamics of the economy, by numerical methods.

Download Info

If 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.
File URL: http://www.york.ac.uk/media/economics/documents/discussionpapers/2000/0022.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Department of Economics, University of York in its series Discussion Papers with number 00/22.

as in new window
Length:
Date of creation:
Date of revision:
Handle: RePEc:yor:yorken:00/22

Contact details of provider:
Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
Phone: (0)1904 323776
Fax: (0)1904 323759
Email:
Web page: http://www.york.ac.uk/economics/
More information through EDIRC

Related research

Keywords: endogenous growth; exhaustible resources; optimal growth; steady state; transitional dynamics.;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:yor:yorken:00/22. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paul Hodgson).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.