Solow-Stiglitz efficiency condition
The Solow-Stiglitz efficiency condition describes the optimal distribution of wealth between real capital on the ground (in extraction systems) and the resource in the ground. It is fulfilled when the growth rate of the marginal productivity of the extracted resource is just as great as the marginal productivity of capital. It represents the intertemporal Pareto-optimal solution for resource owners . If the Solow-Stiglitz efficiency condition is met, it is not possible to enable future generations a higher level of consumption by renouncing the consumption of the resource . It is named after the two American economists Robert Solow and Joseph E. Stiglitz .
See also
Individual evidence
- ↑ a b Hans-Werner Sinn: The green paradox: Why one must not forget the offer in climate policy. (Ifo Working Paper No.54; PDF; 687 kB) Ifo Institute for Economic Research at the Ludwig Maximilians University in Munich and Chair of Public Finance, January 2008, p. 26 , accessed on June 21, 2009 (German).
- ^ A b Oskar Krohmer: Limits of Climate Policy - The Supply Side. (Seminar paper on "Resource Economics and Climate Policy") (No longer available online.) Technische Universität Dresden - Faculty of Economics - Chair of Public Finance, 2009, p. 8 , formerly in the original ; accessed on June 21, 2009 (German). ( Page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
