Constant consumption and the economic depreciation of natural capital: Thenonautonomous case

Authors
Hartwick, JM Van Long, N
Citation
Jm. Hartwick et N. Van Long, Constant consumption and the economic depreciation of natural capital: Thenonautonomous case, INT ECON R, 40(1), 1999, pp. 53-62
Citations number
14
Categorie Soggetti
Economics
Journal title
INTERNATIONAL ECONOMIC REVIEW
ISSN journal
00206598 → ACNP
Volume
40
Issue
1
Year of publication
1999
Pages
53 - 62
Database
ISI
SICI code
0020-6598(199902)40:1<53:CCATED>2.0.ZU;2-Q
Abstract
We investigate economic depreciation of natural capital for cases of nonsta tionary output prices, technology, and interest rates. For the former two c ases (exogenous movements in prices and technology), constant consumption e merges under a strategy of investing to cover off economic depreciation. Th e interest rate case requires a modified sinking fund strategy.