The Role of Impatience in Sustainable Growth
By Lee Endress, James Roumasset, and Christopher Wada Sustaining economic growth requires appropriate husbandry of our natural capital resources (e.g. fish, trees, freshwater, and coral). But how much conservation is optimal? According to proponents of “strong sustainability,” natural capital should never be depleted. This is inconsistent with maximizing economic welfare however. In less developed economies, […]
Read MoreHow Have Catch Shares Been Allocated?
A unique database was created that describes the methods used to allocate shares in nearly every major catch share fishery in the world. Approximately 54% of the major catch share fisheries in the world allocated the Total Allowable Catch (TAC) solely on the basis of historical catch records, 3% used auctions, and 6% used equal […]
Read MoreIntergenerational Equity with Individual Impatience in an OLG Model of Optimal and Sustainable Growth
Among the ethical objections to intergenerational impartiality is the violation of consumer sovereignty given that individuals are impatient. We accommodate that concern by distinguishing intra- and inter-generational discounting in an OLG model suitable for analyzing sustainability issues. Under the assumption of constant elasticity of marginal felicity, the optimum trajectory of aggregate consumption is guided, via […]
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