Sustainability of an economy relying on two reproducible assets

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2019
Volume: 101
Issue: C
Pages: 145-160

Authors (3)

Cairns, Robert D. (not in RePEc) Del Campo, Stellio (not in RePEc) Martinet, Vincent (Université Paris-Saclay)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The highest utility level that can be sustained in an economy is given by the maximin value. To be able to use this value for sustainability accounting, the corresponding maximin problem must be solved. This paper studies the sustainability of an economy composed of two reproducible assets, each producing one of two consumption goods which are substitutes in utility. We characterize the maximin path of the economy, and associated maximin shadow values. We discuss how these shadow values could be used as accounting prices for development paths that differ from the maximin trajectory. The corresponding genuine savings indicator informs on the improvement or decline of the sustainable level of utility and the prospects of future generations.

Technical Details

RePEc Handle
repec:eee:dyncon:v:101:y:2019:i:c:p:145-160
Journal Field
Macro
Author Count
3
Added to Database
2026-01-25