Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171539
Authors: 
Pittel, Karen
Bretschger, Lucas
Year of Publication: 
2008
Series/Report no.: 
Economics Working Paper Series 08/96
Abstract: 
We analyze an economy in which sectors are heterogeneous with respect to the intensity of natural resource use. Long-term dynamics are driven by resource prices, sectoral composition, and directed technical change. We study the balanced growth path and determine stability conditions. Technical change is found to be biased towards the resource-intensive sector. Resource taxes have no impact on dynamics except when the tax rate varies over time. Constant research subsidies raise the growth rate while increasing subsidies have the opposite effect. We also find that supporting sectors by providing them with productivity enhancing public goods can raise the growth rate of the economy and additionally provide an effective tool for structural policy.
Subjects: 
sustainable development
sectoral heterogeneity
directed technical change
JEL: 
O4
O41
Q01
Q3
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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