IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_75.html
   My bibliography  Save this paper

The Weitzman Foundation of NNP with Non-constant Interest Rates

Author

Listed:
  • Geir Asheim

Abstract

Weitzman shows that capital gains should be excluded from NNP. This result is somewhat deceptive since, with his assumption of a constant interest rate, there are no aggregate capital gains, while capital gains in each open economy should be included fully. Here, the implications of Weitzman welfare foundation is explored in the case of non-constant interest rates, a case often encountered in resource models. It is established that the conventional measure of NNP must be adjusted for capital gains and interest rate effects. This result is of importance for the distribution of NNP between resource rich and resource poor countries. Published in: The Scandinavian Journal of Economics 3, 1997

Suggested Citation

  • Geir Asheim, 1994. "The Weitzman Foundation of NNP with Non-constant Interest Rates," CESifo Working Paper Series 75, CESifo.
    • Handle: RePEc:ces:ceswps:_75
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/ces_wp75.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hartwick, John M & Long, Ngo Van, 1999. "Constant Consumption and the Economic Depreciation of Natural Capital: The Nonautonomous Case," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(1), pages 53-62, February.
    2. Withagen, C. A. A. M., 1996. "Sustainability and investment rules," Economics Letters, Elsevier, vol. 53(1), pages 1-6, October.
    3. Weitzman, Martin L., 1998. "On the welfare significance of national product under interest-rate uncertainty," European Economic Review, Elsevier, vol. 42(8), pages 1581-1594, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_75. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.