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Constant Savings Rates and Quasi-Arithmetic Population Growth under Exhaustible Resource Constraints

Author

Listed:
  • Geir B. Asheim
  • Wolfgang Buchholz
  • John M. Hartwick
  • Tapan Mitra
  • Cees A. Withagen

Abstract

In the Dasgupta-Heal-Solow-Stiglitz model of capital accumulation and resource depletion we show the following equivalence: If an efficient path has constant (gross and net of population growth) savings rates, then population growth must be quasi-arithmetic and the path is a maximin or a classical utilitarian optimum. Conversely, if a path is optimal according to maximin or classical utilitarianism (with constant elasticity of marginal utility) under quasiarithmetic population growth, then the (gross and net of population growth) savings rates converge asymptotically to constants.

Suggested Citation

  • Geir B. Asheim & Wolfgang Buchholz & John M. Hartwick & Tapan Mitra & Cees A. Withagen, 2005. "Constant Savings Rates and Quasi-Arithmetic Population Growth under Exhaustible Resource Constraints," CESifo Working Paper Series 1573, CESifo.
  • Handle: RePEc:ces:ceswps:_1573
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    References listed on IDEAS

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    More about this item

    Keywords

    constant savings rate; quasi-arithmetic population growth;

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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