We study a two-sector endogenous growth model where a single consumption good is obtained using a renewable resource in combination with physical capital. Both inputs are essential for production and technical substitutes. In this context we analyze the issues of sustainability, long-run and...

We study the one sector model of growth when a linear production technology is combined with adjustment costs and a technology for capital maintenance. Agents are allowed to under-use the installed capital and to vary the depreciation rate. This economy decides endogenously how much resources...

In this paper we show a method for solving in closed form a particular family of four-dimension non-linear modified Hamiltonian dynamic systems, with two states and two co-states and two co-states, which arises from a two-sector endogenous growth model where the physical capital stock is...

When there are pollution externalities the competitive equilibrium is not Pareto-optimal nor environmentally sustainable even if abatement activities are endogenously decided. In this paper we introduce the possibility of an ecological catastrophe like the one predicted by the global climate...

We examine the dimension reduction method and prove that it could be misleading if we try to get some insight into the dynamics of the original system from the dynamics of the transformed system alone. The reduced system seemingly may give rise to a continuum multiplicity of steady states when,...