Intertemporal Equity and Hartwick's Rule in an Exhaustible Resource Model
Universitaet Regensburg; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Dalhousie University - Department of Economics
Cornell University - Department of Economics
Scandinavian Journal of Economics, Vol. 107, No. 3, pp. 547-561, September 2005
In a standard exhaustible resource model, it is known that if, along a competitive path, investment in the augmentable capital good equals the rents on the exhaustible resource (known as Hartwick's rule), then the path is equitable in the sense that the consumption level is constant over time. In this paper, we show the converse of this result: if a competitive path is equitable, then it must satisfy Hartwick's rule.
Number of Pages in PDF File: 15
Keywords: Intertemporal equity, exhaustible resource, Hartwick's rule, Hotelling's rule
JEL Classification: D90, O11, O41, Q32Accepted Paper Series
Date posted: December 29, 2005
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo8 in 1.140 seconds