Accumulation Regimes in Dynastic Economies with Resource Dependence and Habit Formation

Dynastic accumulation of wealth

Why do some dynasties maintain the fortune of their founders while others completely squander it in few generations? To address this question, we use a simple deterministic microfounded model based on two main elements: the “hunger for accumulation” and the “willingness to exert effort”. Contrary to models with capital market imperfections, our setting points to the crucial role of our two key ...

Dynastic cycle: a generic structure describing resource allocation in political economies, markets and firms

A generic system embodies basic principles and insights that are common to a set of diverse cases and situations. For example, a generic system called “limits to growth” captures the constraints experienced by an organization due to the scarcity of an important resource. Its manifestations range from the tragedy of Easter Island to rise and decline of People Express Airline to the spotty perfor...

Title Capital depreciation and waste accumulation in capital - resource economies

In this note, we investigate how the depreciation of a manufactured stock and the related accumulation of a waste stock can alter the optimal path of the capital-resource economy. It is shown that the optimal consumption path is affected by how the disuse pattern of the manufactured stock in question is distributed, specifically with forward-looking terms.

Consumption Models with Habit Formation

simulation and experimental studies for prediction mineral scale formation in oil field during mixing of injection and formation water

abstract: mineral scaling in oil and gas production equipment is one of the most important problem that occurs while water injection and it has been recognized to be a major operational problem. the incompatibility between injected and formation waters may result in inorganic scale precipitation in the equipment and reservoir and then reduction of oil production rate and water injection rate. ...