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Georgescu-Roegen versus Solow/Stiglitz: Back to a controversy

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  • Germain, Marc

Abstract

Within the framework of an optimal growth model with a non renewable resource, this paper seeks to answer the question of whether a production function that ignores the constraints of physics on the production process (such as the Cobb-Douglas) can generate a good medium-term approximation of the trajectory of the economy obtained with a “true” production function, which takes these constraints into account. Two functions that respect these constraints are considered: (i) the CES function and (ii) a function called ATF, designed specifically for the purposes of this paper and which has the property of being closer to the Cobb-Douglas than is the CES.

Suggested Citation

  • Germain, Marc, 2019. "Georgescu-Roegen versus Solow/Stiglitz: Back to a controversy," Ecological Economics, Elsevier, vol. 160(C), pages 168-182.
  • Handle: RePEc:eee:ecolec:v:160:y:2019:i:c:p:168-182
    DOI: 10.1016/j.ecolecon.2019.01.012
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    References listed on IDEAS

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    More about this item

    Keywords

    Optimal growth; Production function; Exhaustible resource;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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