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

Thanh Le and Cuong Le Van ()
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Cuong Le Van: IPAG Business School, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

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.

Keywords: R&D (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

Published in Mathematical Social Sciences, 2016, ⟨10.1016/j.mathsocsci.2016.04.001⟩

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Related works:
Journal Article: 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:hal:cesptp:hal-01302522

DOI: 10.1016/j.mathsocsci.2016.04.001

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