On Hartwick’s Rule for Constant Utility and Regular Maximin Paths of Capital Accumulation and Resource Depletion
Avinash Dixit (),
Peter Hammond () and
Michael Hoel ()
The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics
Hartwick’s rule of investigating resource rents in an economy with producible capital and exhaustible resources becomes, in a general model of heterogeneous stocks, a rule whereby the total value of net investment (resource depletion counting negative) is equal to zero. It is shown that holding the discounted present value of net investment constant is necessary and sufficient for a competitive path to give constant utility. Conditions for the general rule to give a maximin path are also discussed.
Pages: 10 pages
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://warwick.ac.uk/fac/soc/economics/research/w ... 78-1988/twerp133.pdf
Working Paper: ON HARTWICK'S RULE FOR CONSTANT UTILITY AND REGULAR MAXIMIN PATHS OF CAPITAL ACCUMULATION AND RESOURCE DEPLETION (1978)
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:wrk:warwec:133
Access Statistics for this paper
More papers in The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Margaret Nash ().