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Constant savings rates and quasi-arithmetic population growth under exhaustible resource constraints

Author

Listed:
  • Asheim, Geir B.

    (Dept. of Economics, University of Oslo)

  • Buchholz, Wolfgang

    (Department of Economics, University of Regensburg)

  • Hartwick, John M.

    (Queen’s University, Kingston, Ontario)

  • Mitra, Tapan

    (Cornell University, Ithaca, New York)

  • Withagen, Cees

    (Free University, De Boelelaan, Nederland)

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

  • Asheim, Geir B. & Buchholz, Wolfgang & Hartwick, John M. & Mitra, Tapan & Withagen, Cees, 2005. "Constant savings rates and quasi-arithmetic population growth under exhaustible resource constraints," Memorandum 23/2005, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2005_023
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Constant savings rate; quasi-arithmetic population growth;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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