Transitional dynamics in an R&D-based growth model with natural resources

Le, Thanh and Le Van C. (2016) Transitional dynamics in an R&D-based growth model with natural resources. Mathematical Social Sciences, 82 1-17. doi:10.1016/j.mathsocsci.2016.04.001


Author Le, Thanh
Le Van C.
Title Transitional dynamics in an R&D-based growth model with natural resources
Journal name Mathematical Social Sciences   Check publisher's open access policy
ISSN 0165-4896
Publication date 2016-07-01
Year available 2016
Sub-type Article (original research)
DOI 10.1016/j.mathsocsci.2016.04.001
Open Access Status Not Open Access
Volume 82
Start page 1
End page 17
Total pages 17
Place of publication Amsterdam, Netherlands
Publisher Elsevier BV
Collection year 2017
Language eng
Abstract In this paper, we prove the existence and uniqueness of the optimal path for a resource endowed economy with R&D. This path converges to an optimal steady state, which is a saddle point, for each type of resources (renewable or non-renewable). In this steady state, a finite size resource sector coexists with other continuously growing sectors. In comparison, the corresponding decentralized equilibrium is suboptimal and there is either over- or under-investment in R&D from the social planner's perspective. At optimum, positive long-run growth will be sustained regardless type of resources used.
Keyword Transitional dynamics
R&D
Growth model
Decentralized equilibrium
Optimal steady state
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
School of Economics Publications
 
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