Asheim, Geir B. Buchholz, Wolfgang Hartwick, John M. Mitra, Tapan Withagen, Cees
Year of Publication:
Memorandum, Department of Economics, University of Oslo 2005,23
In the Dasgupta-Heal-Solow-Stiglitz model of capital accumulation and resource depletion we show the following equivalence: If an efficient path has constant (gross and net of population growth) savings rates, then population growth must be quasi-arithmetic and the path is a maximin or a classical utilitarian optimum. Conversely, if a path is optimal according to maximin or classical utilitarianism (with constant elasticity of marginal utility) under quasiarithmetic population growth, then the (gross and net of population growth) savings rates converge asymptotically to constants.
Constant savings rate quasi-arithmetic population growth