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Original scientific paper

Renewable Resources, Capital Accumulation, and Economic Growth

Wei-Bin Zhang ; Ritsumeikan Asia Pacific University

Fulltext: english, pdf (814 KB) pages 24-35 downloads: 567* cite
APA 6th Edition
Zhang, W. (2011). Renewable Resources, Capital Accumulation, and Economic Growth. Business Systems Research, 2 (1), 24-35. Retrieved from https://hrcak.srce.hr/70811
MLA 8th Edition
Zhang, Wei-Bin. "Renewable Resources, Capital Accumulation, and Economic Growth." Business Systems Research, vol. 2, no. 1, 2011, pp. 24-35. https://hrcak.srce.hr/70811. Accessed 16 Jul. 2020.
Chicago 17th Edition
Zhang, Wei-Bin. "Renewable Resources, Capital Accumulation, and Economic Growth." Business Systems Research 2, no. 1 (2011): 24-35. https://hrcak.srce.hr/70811
Harvard
Zhang, W. (2011). 'Renewable Resources, Capital Accumulation, and Economic Growth', Business Systems Research, 2(1), pp. 24-35. Available at: https://hrcak.srce.hr/70811 (Accessed 16 July 2020)
Vancouver
Zhang W. Renewable Resources, Capital Accumulation, and Economic Growth. Business Systems Research [Internet]. 2011 [cited 2020 July 16];2(1):24-35. Available from: https://hrcak.srce.hr/70811
IEEE
W. Zhang, "Renewable Resources, Capital Accumulation, and Economic Growth", Business Systems Research, vol.2, no. 1, pp. 24-35, 2011. [Online]. Available: https://hrcak.srce.hr/70811. [Accessed: 16 July 2020]

Abstracts
This paper proposes a dynamic economic model with physical capital and renewable resources. Different from most of the neoclassical growth models with renewable resources which are based on microeconomic foundation and neglect physical capital accumulation, this study proposes a growth model with dynamics of renewable resources and physical capital accumulation. The model is a synthesis of the neoclassical growth theory and the traditional dynamic models of renewable resources with an alternative approach to household behavior. The model describes a dynamic interdependence among physical accumulation, resource change, and division of labor under perfect competition. Because of its refined economic structure, our study enables some interactions among economic variables which are not found in the existing literature on economic growth with renewable resources. We simulate the model to
demonstrate the existence of equilibrium points and motion of the dynamic system. Our comparative dynamic analysis shows, for instance, that a rise in the propensity to consume the renewable resource increases the interest rate and reduces the national and production sector’s capital stocks, wage rate and level of the consumption good. Moreover, it initially reduces and then increases the capital stocks of the resource sector and the consumption and price of the renewable resource. The stock of the renewable resource is initially increased and then reduced. Finally, labor is redistributed from the production to the resource sector.

Keywords
renewable resource; harvesting; capital accumulation; economic growth

Hrčak ID: 70811

URI
https://hrcak.srce.hr/70811

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