Optimal Growth When the Stock of Resources is Finite and Depletable,
Abstract
The analysis shows that when consumption of nonreplaceable stocks of resources is incorporated into an optimal economic growth model, the result is a tendency to postpone capital accumulation and to spend time on turnpike growth paths where capital is used less intensively than in a non-resource constrained model of the economy. In the extreme case, where the only feasible growth path is the path of minimum resource use, all capital accumulation is postponed until the last possible moment. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1971
- Accession Number
- AD0732697
Entities
People
- Kent P. Anderson
Organizations
- RAND Corporation