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Investing exhaustible resource rents and the path of consumption

Author

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  • Kirk Hamilton
  • John M. Hartwick

Abstract

. We set out dollar‐valued net national product for an economy with a wasting essential stock (oil deposit). We take up ‘maintaining capital intact’ and locally unchanging consumption. The percentage change in ‘net investment’ or ‘genuine savings,’ relative to the market rate of interest, denotes whether current consumption is rising, constant, or declining. JEL classification: O13, Q28, F0 Investir les rentes dérivées de l’exploitation d’une ressource épuisable et le sentier de consommation. On définit en dollars le produit national net d’une économie qui a un stock de ressources (un dépôt de pétrole) en train de s’épuiser. On envisage de maintenir le capital intact et la consommation locale inchangée. Le changement en pourcentage dans l’investissement net et dans les véritables épargnes, en relation avec le taux d’intérêt sur le marché, définit si la consommation courante croît, demeure constante, ou décline.

Suggested Citation

  • Kirk Hamilton & John M. Hartwick, 2005. "Investing exhaustible resource rents and the path of consumption," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(2), pages 615-621, May.
    • Handle: RePEc:wly:canjec:v:38:y:2005:i:2:p:615-621
    DOI: 10.1111/j.0008-4085.2005.00295.x
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • F0 - International Economics - - General

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