编号：E-2025-3-1
题目：Efficiency with Natural Resources
作者：Bo Zhang
联系方式：Bo Zhang, bozhang@pku.edu.cn
摘要：In this paper we investigate the Pareto efficiency of equilibrium in overlapping generations (OLG) models that incorporate three factors of production: physical capital, labor, and natural resources. We derive both general sufficient conditions and general necessary conditions for assessing the Pareto efficiency of equilibrium allocations, extending and generalizing previous results in this field. We base our approach on comparing the growth rates of capital, income, or total asset value to the interest rate. Specifically, if any of these growth rates is lower than the interest rate, the equilibrium is efficient; if any exceeds the interest rate, the equilibrium is inefficient. We apply these general criteria to several models of resource use, some of which are novel. In one such model, where the resource regeneration function is linear, we establish a threshold for the speed of resource extraction: below this threshold, the equilibrium is efficient; above it, inefficiency emerges. In another novel model, featuring a quadratic regeneration function, we introduce a combined capital index. If the labor share is below this index, the equilibrium is efficient; if the labor share exceeds the index, the equilibrium is inefficient.
