Transitional dynamics in an R&D-based growth model with natural resources

Thanh Le and Cuong Le Van

Mathematical Social Sciences, 2016, vol. 82, issue C, 1-17

Abstract: In this paper, we prove the existence and uniqueness of the optimal path for a resource endowed economy with R&D. This path converges to an optimal steady state, which is a saddle point, for each type of resources (renewable or non-renewable). In this steady state, a finite size resource sector coexists with other continuously growing sectors. In comparison, the corresponding decentralized equilibrium is suboptimal and there is either over- or under-investment in R&D from the social planner’s perspective. At optimum, positive long-run growth will be sustained regardless type of resources used.

Date: 2016
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Transitional dynamics in an R&D-based growth model with natural resources (2016)
Working Paper: Transitional dynamics in an R&D-based growth model with natural resources (2016)
Working Paper: Transitional dynamics in an R&D-based growth model with natural resources (2016)
Working Paper: Transitional Dynamics in an R&D-based Growth Model with Natural Resources (2014)
Working Paper: Transitional Dynamics in an R&D-based Growth Model with Natural Resources (2014)
Working Paper: Transitional Dynamics in an R&D-based Growth Model with Natural Resources (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:matsoc:v:82:y:2016:i:c:p:1-17

DOI: 10.1016/j.mathsocsci.2016.04.001

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