This paper analyzes the nature of economic dynamics in a one-sector optimal growth model in which the technology is generally nonconvex, nondifferentiable, and discontinuous. The model also allows for irreversible investment and unbounded growth. We develop various tools to overcome the technical difficulties posed by the generality of the model. We provide sufficient conditions for optimal pat...

Whether China continues its business-as-usual investment-driven, environment-polluting growth pattern or adopts an investment and innovation-driven, environmentally sustainable development holds important implications for both national and global environmental governance. Building on a Ramsey-Cass-Koopmans growth model that features endogenous technological change induced by R&D and knowledge s...

This paper derives analytically the growth rate of the social cost of carbon (SSC) on an optimal balanced growth path. More specifically, the paper examines a deterministic Ramsey model of optimal economic growth with carbon emissions. In this model, restrictions on technology and preferences are imposed that guarantee optimal balanced growth, i.e., that guarantee an optimal path with constant ...

We introduce the concept of product complexity in an endogenous growth model with renewable energy and expanding product variety à la Grossman-Helpman (1991). We describe the complexity of a product as an increasing function of the variety of inputs it consists of. Considering that energy is necessary to all human activities (including research), we highlight what type of long run growth path i...

Given a graph G = (V, E) whose vertices have been properly coloured, we say that a path in G is colourful if no two vertices in the path have the same colour. It is a corollary of the Gallai-Roy Theorem that every properly coloured graph contains a colourful path on χ(G) vertices. It is interesting to think of what analogous result one could obtain if one considers induced colourful paths inste...

This paper studies growth and welfare effects of fiscal policy in an endogenous growth model with productive public capital where we consider both distortionary and non-distortionary taxation in the model simultaneously. Analyzing the model it is assumed that the economy originally is on the balanced growth path when the government changes its fiscal parameters. The paper then studies growth an...

Climate change may well increase malaria morbidity and mortality. This would slow economic growth through increased spending on health care, reduced production, and less effective education. Slower economic growth would increase the incidence of malaria morbidity and mortality. The integrated assessment model FUND is used to estimate the strength of this negative feedback. Although climate-chan...