Capital depreciation and waste accumulation in capital-resource economies

Rintaro Yamaguchi and K. Ueta

Applied Economics Letters, 2011, vol. 18, issue 6, 519-522

Abstract: In this article, we investigate how the depreciation of a manufactured stock and the related accumulation of a waste stock can alter the optimal path of the capital-resource economy. It is shown that the optimal consumption path is affected by how the disuse pattern of the manufactured stock in question is distributed, specifically with forward-looking terms.

Date: 2011
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Working Paper: Capital depreciation and waste accumulation in capital-resource economies (2010)
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DOI: 10.1080/13504851003761814

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