Bazhanov, Andrei (2008): Sustainable growth: Compatibility between criterion and the initial state.
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There is a large body of research devoted to our understanding of sustainable growth in resource based economies. Some of this research is inapplicable to the real economy. This is a result of inconsistency between the commonly used criteria and the initial state of the real economy. The inconsistency can lead to either inferior, unsustainable, or nonexistent optimal paths of consumption per capita if the criterion is not linked to the initial state. We demonstrate this in a model of the Dasgupta-Heal-Solow-Stiglitz variety with the constant consumption per capita as a benchmark criterion. Our results show that the inconsistency in this case can imply Pareto inferior paths of consumption per capita.
|Item Type:||MPRA Paper|
|Original Title:||Sustainable growth: Compatibility between criterion and the initial state|
|Keywords:||essential nonrenewable resource; sustainable extraction; criterion inconsistency; Hartwick Rule|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q32 - Exhaustible Resources and Economic Development
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q38 - Government Policy
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
|Depositing User:||Andrei Bazhanov|
|Date Deposited:||08. Aug 2008 00:47|
|Last Modified:||13. Feb 2013 16:16|
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