Some Further Economics of Easter Island: Adding Subsistence and Resource Conservation
We extend Brander-Taylor's model of development on Easter Island by adding a resource subsistence requirement to people's preferences, and a conservation incentive in the form of a revenue-neutral, ad valorem tax on resource consumption. Adding subsistence improves plausibility; makes overshoot and collapse of population more extreme, and the steady state less stable; and allows for the possibility that statue building and erection will suddenly stop, in line with the archaeological evidence. We find a tax rate path which almost completely prevents overshoot, and conjecture that the overall strength of this path must rise when the subsistence level rises.
|Date of creation:||Nov 2000|
|Date of revision:|
|Contact details of provider:|| Web page: http://incres.anu.edu.au/EEP/wp.html|
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.:
- Koopmans, Tjalling C, 1977.
"Concepts of Optimality and Their Uses,"
American Economic Review,
American Economic Association, vol. 67(3), pages 261-74, June.
- Koopmans, Tjalling C., 1975. "Concepts of Optimality and Their Uses," Nobel Prize in Economics documents 1975-2, Nobel Prize Committee.
- Tjalling C. Koopmans, 1976. "Concepts of Optimality and Their Uses," Cowles Foundation Discussion Papers 421, Cowles Foundation for Research in Economics, Yale University.
- Brander, James A & Taylor, M Scott, 1998. "The Simple Economics of Easter Island: A Ricardo-Malthus Model of Renewable Resource Use," American Economic Review, American Economic Association, vol. 88(1), pages 119-38, March.
- John Pezzey, 1992. "Sustainability: an interdisciplinary guide," Environmental Values, White Horse Press, vol. 1(4), pages 321-362, November.
- Steger, Thomas M., 2000. "Economic growth with subsistence consumption," Journal of Development Economics, Elsevier, vol. 62(2), pages 343-361, August.
When requesting a correction, please mention this item's handle: RePEc:anu:wpieep:0002. 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: (Jack Pezzey)
If references are entirely missing, you can add them using this form.