Bazhanov, Andrei (2008): Maximin-optimal sustainable growth in a resource-based imperfect economy.
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Abstract
I offer an approach linking a welfare criterion to the opportunities for sustainable development in an imperfect economy. The approach implies a dependence of the criterion on the economy's current state. The economy-linked criterion is constructed using an example with the maximin principle applied to a hybrid level-growth measure. This measure includes as special cases the conventional measures of consumption level and percent change as a measure of growth. The hybrid measure or geometrically weighted percent can be used for measuring sustainable growth as an alternative to percent. The problem is considered for the Dasgupta-Heal-Solow-Stiglitz model. Closed form solutions are obtained for the optimal paths including the paths dynamically consistent with the updates in reserve estimates.
Item Type: | MPRA Paper |
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Original Title: | Maximin-optimal sustainable growth in a resource-based imperfect economy |
Language: | English |
Keywords: | imperfect economy; endogenous preferences; essential nonrenewable resource; geometrically weighted percent; normative resource peak |
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, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products |
Item ID: | 19258 |
Depositing User: | Andrei Bazhanov |
Date Deposited: | 13 Dec 2009 21:40 |
Last Modified: | 29 Sep 2019 00:43 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/19258 |
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Maximin-optimal sustainable growth in a resource-based imperfect economy. (deposited 13 Jul 2009 23:42)
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Maximin-optimal sustainable growth in a resource-based imperfect economy. (deposited 03 Aug 2009 05:31)
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Maximin-optimal sustainable growth in a resource-based imperfect economy. (deposited 03 Aug 2009 05:31)