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The authors consider a demo-economic model where the economy consists of two sectors ("hunting and farming" and "industry"), and both sectors depend directly or indirectly on the explanation of a renewable resource. The primary sector harvests a renewable resource (fish, corn, or wood) which is used as the input into industrial production, the secondary(More)
This paper considers a capital accumulation model with the specific feature that adjustment costs depend on investment relative to the size of the capital stock. This framework has, beyond its plausible yet neglected setting, a number of interesting consequences. In particular, the possibility of multiple equilibria, of an unstable steady state and thus of(More)
The paper studies a credit market model with endogenous credit cost and debt constraints in which multiple candidates for steady state equilibria arise. We use dynamic programming (DP) with flexible grid size to locate thresholds that separate different domains of attraction. More specifically, we employ DP to (1) compute present value borrowing constraints(More)
This study focuses on the dynamic, endogenous, nonlinear interactions between the economy, population growth and the environment. Literature on endogenous growth theory was reviewed and the 3-sector demoeconomic model was provided as the analytical framework for the study of sustainable development through the integration of population growth, resource use(More)
e small open economy version of the Ramseymodel exhibits the counterfactual outcome that consumption tends to zero in the long run in case that domestic residents are relatively impatient. It is shown that incorporating either absolute or relative wealth preferences allows for multiple interior steady states, while retaining the standard steady state (no(More)
This paper extends the recent investigation of Tahvonen and Withagen (1996, Journal of Economic Dynamics and Control 20, 1775}1795) for costly and thus sluggish instead of instantaneous reductions in emissions. In addition to the social optimum, the paper investigates the competitive equilibrium. This plausible extension allows to derive limit cycles as the(More)