[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/ecm/wc2000/1480.html
   My bibliography  Save this paper

Can Nonrenewable Resources Alleviate the Knife-edge Character of Endogenous Growth?

Author

Listed:
  • Christian Groth

    (University of Copenhagen)

Abstract
Can the knife-edge restriction on technology imposed by standard endogenous growth models be relaxed by allowing for nonrenewable resources entering the technology? To answer this question we examine whether stable endogenous growth is compatible with increasing returns to scale with respect to producible inputs when nonrenewable resources are a necessary input into the growth engine. In a one-sector optimal growth model, we find that the existence and stability of a steady state is compatible with a wide range of parameter values, including cases with increasing returns to capital and/or the natural resource. However, in all cases, population growth turns out to be necessary for stable growth in pr. capita consumption. Thus, under these circumstances, (strictly) endogenous stable growth is not possible, not even as a knife-edge case. But semi-endogenous growth is an attractive alternative allowing a rich set of determinants of long-run growth.

Suggested Citation

  • Christian Groth, 2000. "Can Nonrenewable Resources Alleviate the Knife-edge Character of Endogenous Growth?," Econometric Society World Congress 2000 Contributed Papers 1480, Econometric Society.
    • Handle: RePEc:ecm:wc2000:1480
    as

    Download full text from publisher

    File URL: http://fmwww.bc.edu/RePEc/es2000/1480.pdf
    File Function: main text
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecm:wc2000:1480. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/essssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.