Optimal growth, genuine savings and long-run dynamics

Valente, Simone (2008) Optimal growth, genuine savings and long-run dynamics. Scottish Journal of Political Economy, 55 (2). pp. 210-226. ISSN 0036-9292

Full text not available from this repository. (Request a copy)


Green accounting theories have shown that negative genuine savings at some point in time imply unsustainability. Consequently, recent studies advocate the use of the genuine savings measure for empirical testing: a negative index implies that sustainability be rejected. However, this criterion cannot ascertain sustainability, because positive current genuine savings do not rule out genuine dissaving in the future. This paper derives a one-to-one relationship between the sign of long-run genuine savings and the limiting condition for sustained utility in the capital-resource growth model, assuming technical progress and resource renewability. This result suggests to extend the genuine saving method to include a test of the limiting condition: if this condition is empirically rejected, positive current genuine savings are delivering a false message.

Item Type: Article
Uncontrolled Keywords: genuine saving,optimal growth,net investments,sustainability,technological progress
Faculty \ School: Faculty of Social Sciences > School of Economics
UEA Research Groups: Faculty of Social Sciences > Research Groups > Environment, Resources and Conflict
Faculty of Social Sciences > Research Groups > Economic Theory
Depositing User: Pure Connector
Date Deposited: 24 Sep 2016 00:57
Last Modified: 07 Mar 2024 02:04
URI: https://ueaeprints.uea.ac.uk/id/eprint/60322
DOI: 10.1111/j.1467-9485.2008.00451.x

Actions (login required)

View Item View Item