Modern macroeconomic theory utilises optimal control techniques to model the maximisation of individual well-being using a lifetime utility function. Agents face choices over current and future consumption (with resultant implied savings decisions) seeking to maximise the present value of...

Modern macroeconomic theory utilises optimal control techniques to model the maximisation of individual well-being using a lifetime utility function. Agents face choices over current and future consumption (with resultant implied savings decisions) seeking to maximise the present value of...

This paper reports the first long-run test of how Genuine Savings (also called comprehensive investment or adjusted net savings) predicts future well-being. The theory of weak sustainability suggests that a country with a positive level of Genuine Savings (GS) should experience non-declining...

Modern macroeconomic theory utilises optimal control techniques to model the maximisation of individual well-being using a lifetime utility function. Agents face choices over current and future consumption (with resultant implied savings decisions) seeking to maximise the present value of...

This paper reports long-run tests of how comprehensive investment (CI) predicts future well-being in the USA. Theory suggests that a country with a positive level of CI should experience non-declining future utility. Despite the widespread uptake of CI, previous tests of its predictive power are...