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On competitive equitable paths under exhaustible resource constraints: The case of a growing population
Author(s) -
Mitra Tapan
Publication year - 2008
Publication title -
international journal of economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 11
eISSN - 1742-7363
pISSN - 1742-7355
DOI - 10.1111/j.1742-7363.2007.00068.x
Subject(s) - economics , population , consumption (sociology) , investment (military) , generalization , resource (disambiguation) , microeconomics , per capita , population growth , competitive equilibrium , constant (computer programming) , mathematical economics , econometrics , mathematics , computer science , mathematical analysis , social science , computer network , programming language , demography , sociology , politics , political science , law
The paper examines the nature of competitive paths in an exhaustible resource model, which allows for a growing population. For competitive paths that are equitable in the sense that the per capita consumption level is constant over time, the implicit investment rule is derived. This is seen to be a generalization of Hartwick's rule, obtained in the case of a stationary population. It is also shown that the existence of a competitive equitable path implies that a population can experience at most quasi‐arithmetic growth.