Optimal Use of a Replenishable Ressource in a Model of Capital Accumulation
(1979) , 15 pages
Files
WP-7907.pdf
Open Access - Adobe PDF
- 308.69 KB
Details
- Authors
- Abstract
- (en) We consider an optimal growth model in which the flow from a stock of replenishable resource is an essential factor in a production function which combines the flow with a capital stock to produce an all purpose good which may be consumed or saved to augment the capital stock. We assume that the stock of replenishable resource follows a natural growth law which is a concave function of the stock. We seek the optimal time path of the flow of the replenishable resource and consumption out of production so as to maximise over an infinite horizon the integral of time discounted utility of consumption. We examine the equilibrium towards which the solution of the differential system determining the optimal path tends and discuss the stability of this equilibrium. We also examine the effect of including the stock of replenishable resource in the utility function.
- Affiliations
Citations
Chiarella, C., & Souames, A. (1979). Optimal Use of a Replenishable Ressource in a Model of Capital Accumulation (Working Papers Institut des sciences économiques 7907). https://hdl.handle.net/2078.5/278791