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Título : Gerogescu-Roegen versus Solow/Stiglitz and the Convergence to the Cobb-Douglas
Autor : Petith, Howard
Palabras clave : Exhaustible resources
Elasticity of substitution
Innovation possibility frontier
Fecha de publicación : 15-jun-2001
Serie : UFAE and IAE Working Papers
489.01
Resumen: The value of the elasticity of substitution of capital for resources is a crucial element in the debate over whether continual growth is possible. It is generally held that the elasticity has to be at least one to permit continual growth and that there is no way of estimating this outside the range of the data. This paper presents a model in which the elasticity is determined endogenously and may converge to one. It is concluded that the general opinion is wrong: that the possibility of continual growth does not depend on the exogenously given value of the elasticity and that the value of the elasticity outside the range of the data can be studied by econometric methods.
URI : http://hdl.handle.net/10261/1915
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