Genuine saving under stochastic growth
Chuan-Zhong Li () and
Karl-Gustaf Löfgren ()
Letters in Spatial and Resource Sciences, 2012, vol. 5, issue 3, 167-174
The concept of genuine saving has in recent years become widely accepted as a dynamic welfare indicator, which first appeared in Weitzman (Q. J. Econ. 99:1–13, 1976 ) and then formalized by Pearce and Atkinson (Ecol. Econ. 8:103–108, 1993 ). This paper attempts to generalize this concept in a stochastic setting using an extended version of the standard Ramsey growth model (Merton in Rev. Econ. Stud. 42:375–379, 1975 ). We find that the genuine saving formula in a stochastic setting also involves a variance component reflecting the welfare loss from risk aversion. Copyright Springer-Verlag 2012
Keywords: Genuine saving; Stochastic growth; Welfare measurement; D6; O40 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:lsprsc:v:5:y:2012:i:3:p:167-174
Ordering information: This journal article can be ordered from
Access Statistics for this article
Letters in Spatial and Resource Sciences is currently edited by Henk Folmer and Amitrajeet A. Batabyal
More articles in Letters in Spatial and Resource Sciences from Springer
Bibliographic data for series maintained by Sonal Shukla ().