Linear production function,externalities and indeterminacy in a capital-resource growth model |
| |
Authors: | Oliviero A Carboni Paolo Russu |
| |
Institution: | Department of Economics and Business, University of Sassari and CRENoS, Italy |
| |
Abstract: | This paper investigates the equilibrium growth dynamics of an economy whose production is based on natural resources and which seeks to maximize welfare to the local community. This involves determining the optimal trajectories of consumption in the local area and the use of the environmental resource. Economic dynamics are affected by negative environmental externalities which are explicitly included as unfavourable effects in a linear production function. The analysis shows the existence of local and global indeterminacy. |
| |
Keywords: | Global and local indeterminacy Environmental externalities Open-access natural resources |
本文献已被 ScienceDirect 等数据库收录! |