Sustainability with endogenous discounting

John M. Hartwick and Ngo Long

International Journal of Economic Theory, 2020, vol. 16, issue 2, 216-221

Abstract: We construct a dynamic competitive model with a stock of human‐made capital and several stocks of natural resources and ask under what conditions consumption will be constant if infinitesimal households with heterogeneous preferences and endowments discount their utility at an endogenous rate that depends on some macroeconomic variables. We show that for consumption to be constant, this function must be the marginal product of capital function. We demonstrate that Hartwick's rule holds in a modified form that takes account of natural growth of resource stocks.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/ijet.12237

Related works:
Working Paper: Sustainability with endogenous discounting (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ijethy:v:16:y:2020:i:2:p:216-221

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1742-7355

Access Statistics for this article

International Journal of Economic Theory is currently edited by Kazuo Nishimura and Makoto Yano

More articles in International Journal of Economic Theory from The International Society for Economic Theory
Bibliographic data for series maintained by Wiley Content Delivery ().