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Sustainable growth: Compatibility between a plausible growth criterion and the initial state

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  • Bazhanov, Andrei V.

Abstract

There is a large body of research devoted to understanding sustainable growth in resource-based economies. Some of this research cannot be applied to real economies directly because the initial states of real economies do not match the initial states assumed in the models. Using a model of theDasgupta-Heal-Solow-Stiglitz variety the paper shows that inconsistency between assumed and actual initial states can lead to a less desirable, in particular, a Pareto inferior path of consumption per capita. The paper also presents a methodology for constructing transition paths from an imperfect initial state to an initial state compatible with the standard steady state consumption path.

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  • Bazhanov, Andrei V., 2010. "Sustainable growth: Compatibility between a plausible growth criterion and the initial state," Resources Policy, Elsevier, vol. 35(2), pages 116-125, June.
    • Handle: RePEc:eee:jrpoli:v:35:y:2010:i:2:p:116-125
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    1. Bazhanov, Andrei, 2011. "Зависимость Долгосрочного Роста Ресурсной Экономики От Начального Состояния: Сравнение Моделей На Примере Российской Нефтедобычи [The dependence of the potential sustainability of a resource econom," MPRA Paper 35888, University Library of Munich, Germany.
    2. Bazhanov, Andrei, 2011. "Investment and current utility change in dynamically inefficient economies," MPRA Paper 35487, University Library of Munich, Germany.
    3. Bazhanov, A., 2011. "The Dependence of the Potential Sustainability of a Resource Economy on the Initial State: a Comparison of Models Using the Example of Russian Oil Extraction," Journal of the New Economic Association, New Economic Association, issue 12, pages 77-100.
    4. Bazhanov, Andrei V., 2015. "Inefficiency and sustainability," Resources Policy, Elsevier, vol. 45(C), pages 210-216.
    5. Bazhanov, Andrei V., 2013. "Constant-utility paths in a resource-based economy," Resource and Energy Economics, Elsevier, vol. 35(3), pages 342-355.
    6. Bazhanov, Andrei, 2012. "Disregarded inefficiency may dominate sustainability policies," MPRA Paper 43621, University Library of Munich, Germany.
    7. Andrei Bazhanov, 2012. "A Closed-Form Solution to Stollery’s Problem with Damage in Utility," Computational Economics, Springer;Society for Computational Economics, vol. 39(4), pages 365-386, April.

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