Abstract
AbstractWe construct a dynamic competitive model with a stock of human‐made capital and several stocks of natural resources and ask under what conditions consumption will be constant if infinitesimal households with heterogeneous preferences and endowments discount their utility at an endogenous rate that depends on some macroeconomic variables. We show that for consumption to be constant, this function must be the marginal product of capital function. We demonstrate that Hartwick's rule holds in a modified form that takes account of natural growth of resource stocks.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
