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

Geir B. Asheim (), Wolfgang Buchholz, John M. Hartwick, Tapan Mitra () and Cees Withagen
Additional contact information
Tapan Mitra: Cornell University, Ithaca, New York, Postal: Department of Economics, 448 Uris Hall, New York 14853, USA, http://www.arts.cornell.edu/econ/mitra/

No 23/2005, Memorandum from Oslo University, Department of Economics

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.

Keywords: Constant savings rate; quasi-arithmetic population growth (search for similar items in EconPapers)
JEL-codes: O10 Q32 (search for similar items in EconPapers)
Date: Written
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Related works:
Working Paper: Constant Savings Rates and Quasi-Arithmetic Population Growth under Exhaustible Resource Constraints (2005)
Journal Article: Constant savings rates and quasi-arithmetic population growth under exhaustible resource constraints (2007)
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