We investigate an intertemporal model with an exhaustible resource inflowwhich exhibits a single peak in consumption on the path of development. Thepeak follows the date at which net investment is zero. The ``top'' ofconsumption is higher and flatter and peaks later when the discount rate...

We do double-entry national accounting and incorporate zero profit arbitrageconditions (Euler equations) for different types of capital, includingnatural capital. In non-balanced growth, capital gains terms for capitalgoods appear in the income side of the accounts. Depreciation terms appearon...

Defining sustainable development as non-declining utility, the consistency of this concept with the Hartwick rule and optimal growth is explored when resources are exhaustible. A simple proof that a generalized Hartwick rule is necessary and sufficient for constant consumption is derived. The...

More than 10 years since a practical linkage between sustainable development and a measure of national wealth—expanded to include natural and environmental resources—was first posited, the empirical estimation of adjusted net savings, dubbed ‘genuine’ saving, has evolved considerably....

How much produced capital would resource-abundant countries have today if they had actually followed the Hartwick Rule (invest resource rents in other assets) over the last 30 years? We employ time series data on investment and rents on exhaustible resource extraction for 70 countries to answer...