Sriket, Hongsilp and Suen, Richard M. H. (2022): 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. Our analysis is based on a general production function which encompasses the CobbDouglas specification. We show that endogenous growth is possible only when the elasticity of substitution between effective labour input and effective resource input is constant and equal to one. If this does not hold (as some empirical studies suggested), then economic growth is solely driven by an exogenous technological factor. We also show that the assumption on this elasticity will affect the model's policy implications in regard to 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:  112023 
Depositing User:  Richard M. H. Suen 
Date Deposited:  18 Feb 2022 06:30 
Last Modified:  18 Feb 2022 06:30 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/112023 
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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)

Sources of Economic Growth in Models with NonRenewable Resources. (deposited 28 Jul 2021 18:38)
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Sources of Economic Growth in Models with NonRenewable Resources. (deposited 28 Jul 2021 18:38)

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