Sriket, Hongsilp and Suen, Richard M. H. (2021): Sources of Economic Growth in Models with NonRenewable Resources.
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Abstract
This paper reexamines the conditions under which endogenous economic growth can emerge in neoclassical models with nonrenewable resources. Unlike most of the existing studies which focus exclusively on CobbDouglas production function, our analysis is based on a general specification. We formally prove that endogenous growth can emerge only under the "knifeedge" condition of a unitary elasticity of substitution between labour input and resource input. If this elasticity is not equal to one (as suggested by empirical evidence), then longterm economic growth is entirely driven by an exogenous technological factor. We also explore the implications of this on resource taxation.
Item Type:  MPRA Paper 

Original Title:  Sources of Economic Growth in Models with NonRenewable Resources 
Language:  English 
Keywords:  NonRenewable Resources; Endogenous Growth; KnifeEdge Condition; Elasticity of Substitution. 
Subjects:  O  Economic Development, Innovation, Technological Change, and Growth > O1  Economic Development > O13  Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products O  Economic Development, Innovation, Technological Change, and Growth > O4  Economic Growth and Aggregate Productivity > O41  One, Two, and Multisector Growth Models Q  Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3  Nonrenewable Resources and Conservation > Q32  Exhaustible Resources and Economic Development 
Item ID:  108910 
Depositing User:  Richard M. H. Suen 
Date Deposited:  28 Jul 2021 18:38 
Last Modified:  28 Jul 2021 18:38 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/108910 
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Sources of Economic Growth in Models with NonRenewable Resources. (deposited 24 Oct 2019 08:52)

Sources of Economic Growth in Models with NonRenewable Resources. (deposited 22 Feb 2021 10:58)
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Sources of Economic Growth in Models with NonRenewable Resources. (deposited 22 Feb 2021 10:58)