Growth and long-run sustainability

Abstract From any state of economic and environmental assets, the maximin value defines highest level utility that can be sustained forever. Along development path, evolves over time according to investment decisions. If current is lower than this value, there room for growth both value. For resource allocation mechanism ( ram ) dynamics, limited by long-run which an endogenous dynamic sustainability constraint. reaches limit, imposes stop, adoption decisions instead . We illustrate pattern in two canonical models, simple fishery a two-sector economy with nonrenewable resource. discuss what our results imply assessment short long run non-optimal economies.