Efficient Economic Growth

ISBN-13: 9783540549956 / Angielski / Twarda / 1992 / 107 str.

Stefan Homburg

Opis

The book is about the well-known problem that a perfectlycompetitive economy, even if endowed with perfect foresight, can grow in an efficient manner. The causes of this strangeinefficiency are analyzed, and sufficientconditions forefficient economic growth are discussed. The most importantcontribution is the elaboration of a rather well-known, yetunproved, hypothesis which says that the existence of anonproducible productive asset, like land, prevents dynamicinefficiency. This is shown to hold outside steady stategrowth paths. Applications of the theoretical concepts andresults are straightforward and are discussed in detail. Theapplications include the efficient use of exhaustibleresources over time, the possibility of "bubbles" infinancial markets, the theory of interest rates, andquestions concerning optimal social security.

Spis treści

1. Introduction.- 2. Dynamic Efficiency.- 2.1 The Basic Model.- 2.2 A General Theorem on Dynamic Efficiency.- 2.3 Some Further Results.- 2.4 Storable Consumer Goods.- 2.5 The Failure of the First Basic Welfare Theorem.- 2.6 A Stronger Condition.- 2.7 A Remark on Necessary Conditions.- 2.8 Conclusion.- 3. Interest and Growth.- 3.1 Commodity Own Rates of Interest.- 3.2 The Asset-augmented Economy.- 3.3 Interest, Growth, and Dynamic Efficiency.- 3.4 Conclusion.- 4. An Economy with Land.- 4.1 A Characterization of Land.- 4.2 Land as a Consumption Good.- 4.3 Land as a Factor of Production.- 4.4 The Land’s Income Share.- 4.5 Land and Dynamic Efficiency.- 4.6 A Stronger Efficiency Result.- 4.7 Conclusion.- 5. Exhaustible Resources.- 5.1 A Characterization of Exhaustible Resources.- 5.2 Exhaustible Resources as Consumption Goods.- 5.3 Exhaustible Resources as Factors of Production.- 5.4 The Hotelling Rule.- 5.5 Exhaustible Resources and Dynamic Efficiency.- 5.6 Efficient Use of Exhaustible Resources.- 5.7 Conclusion.- 6. Examples and Applications.- 6.1 Dynamic Efficiency in a Simple Growth Model.- 6.2 A Simple Economy with Land.- 6.3 Turgot’s Theory of Fructification.- 6.4 A Capital Reserve System without Capital.- 6.5 Old Masters and Bubbles.- 6.6 A Simple Economy with an Exhaustible Resource.- References.- Name Index.