Sustainability, Hamiltonian Value, and Nnp in a Cake-Eating Economy

摘要: This paper sheds further light on the relationships between current-value Hamiltonian, net national product (NNP), and sustainability condition in context of a cake-eating economy. It shows that usual interpretation Hamiltonian as maximum sustainable consumption/utility level is not correct general for this sense stationarity Hamiltonian. also derives an explicit relationship "keeping value wealth intact." then finds while economy can never be former sense, it will latter provided preferences are presented by logarithmic utility function. Further, that, contrary to common belief, NNP not, general, equal except highly special case linear argues even when correctly adjusted account natural capital depreciation, still notoriously misleading indicator true well-being because, depending degree society's aversion intergenerational inequality, underestimate or overestimate along optimal policy.