Scandinavian Working Papers in Economics
Memorandum,
Oslo University, Department of Economics
No 23/2005: Constant savings rates and quasi-arithmetic population growth under exhaustible resource constraints
Geir B. Asheim (), Wolfgang Buchholz (), John M. Hartwick (), Tapan Mitra () and Cees Withagen ()
Additional contact information
Geir B. Asheim: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Wolfgang Buchholz: Department of Economics, University of Regensburg, Postal: 93040 Regensburg, Germany.
John M. Hartwick: Queen’s University, Kingston, Ontario, Postal: Department of Economics, K7L 3N6, Canada
Tapan Mitra: Cornell University, Ithaca, New York, Postal: Department of Economics, 448 Uris Hall, New York 14853, USA
Cees Withagen: Free University, De Boelelaan, Nederland, Postal: Department of Economics, De Boelelaan 1105, 1081 HV Amsterdam,, The Netherlands
Abstract: In the Dasgupta-Heal-Solow-Stiglitz model of capital accumulation and resource depletion we show the following equivalence: If an efficient path has constant (gross and net of population growth) savings rates, then population growth must be quasi-arithmetic and the path is a maximin or a classical utilitarian optimum. Conversely, if a path is optimal according to maximin or classical utilitarianism (with constant elasticity of marginal utility) under quasiarithmetic population growth, then the (gross and net of population growth) savings rates converge asymptotically to constants.
Keywords: Constant savings rate; quasi-arithmetic population growth
30 pages, September 10, 2005
Full text files
Memo-23-2005.pdf
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