Category Archives: Macroeconomic Theory

Improving on GDP

The winning entries for the Indigo Prize highlight both the importance of improving economic statistics and some of the challenges of doing so. The launch of the Indigo Prize by LetterOne is a welcome initiative which recognises both the limitations … Continue reading

Posted in Environment (general), Macroeconomic Theory | Tagged , , , , , , , | Leave a comment

A Difficulty in Assessing Sustainability

Long-term forecasting of the aggregate production function is essential for assessing sustainability, but very difficult. Is our current living standard sustainable?  Or does depletion of non-renewable natural resources such as fossil fuels and metal ores mean that it must eventually … Continue reading

Posted in Macroeconomic Theory | Tagged , , , , , , | Leave a comment

Net National Product and Sustainability

National product, measured net of a deduction for depletion of natural resources, can in certain conditions provide some indication of whether current consumption is sustainable.  But the conditions are stringent, and even when they are met, other indicators may perform … Continue reading

Posted in Macroeconomic Theory | Tagged , , , , , , | Leave a comment

Constant Consumption with Resource Depletion

I present here a defence of the following proposition: to maintain consumption per person in the long run as non-renewable resources are increasingly depleted, the world needs technical progress so that we can obtain more output from available resources.  The … Continue reading

Posted in Macroeconomic Theory, Minerals | Tagged , , , , , , | Leave a comment