Showing papers by "Kenneth J. Arrow published in 2010"
Posted Content•
TL;DR: The authors developed a consistent and comprehensive theoretical framework for assessing whether economic growth is compatible with sustaining well-being over time, and applied the framework to five countries that differ significantly in stages of development and resource bases: the United States, China, Brazil, India, and Venezuela.
Abstract: We develop a consistent and comprehensive theoretical framework for assessing whether economic growth is compatible with sustaining well-being over time. The framework focuses on whether a comprehensive measure of wealth - one that accounts for natural capital and human capital as well as reproducible capital - is maintained through time. Our framework also integrates population growth, technological change, and changes in health. We apply the framework to five countries that differ significantly in stages of development and resource bases: the United States, China, Brazil, India, and Venezuela. With the exception of Venezuela, significant increases in human capital enable comprehensive wealth to be maintained (and sustainability to be achieved) despite significant reductions in the natural resource base. We find that the value of "health capital" is very large relative to other forms of capital. As a result, its growth rate critically influences the growth rate of per-capita comprehensive wealth.
392 citations
Posted Content•
TL;DR: In this paper, the authors extend earlier work by offering a fully consistent theoretical framework that offers a clear criterion for sustainable development, which yields an empirically implementable measure of whether a given national economy is following a sustainable path.
Abstract: The last two decades have witnessed growing concern that the pattern of economic growth in many countries is not sustainable because of the depletion in stocks of many natural resources and the deterioration in the quality of various environmental services. These concerns have helped spawn a growing literature on 'sustainable development.' This emerging literature expands traditional growth-accounting approaches by giving considerable attention to natural resource stocks and environmental quality. This paper aims to advance this literature. We extend earlier work by offering a fully consistent theoretical framework that offers a clear criterion for sustainable development. This framework yields an empirically implementable measure of whether a given national economy is following a sustainable path. We apply this framework to five countries that differ significantly in terms of their stages of development and resource bases: the United States, China, Brazil, India, and Venezuela.
57 citations
01 Jan 2010
TL;DR: The notion of sustainability is achieved if the current generation leaves the next generation with the capacity to enjoy the same or higher quality of life as discussed by the authors, which is achieved by the assumption that each generation will leave the next one with the same, or higher, quality of living.
Abstract: Policy analysts and policy makers are keenly interested in whether the performance of national economies is consistent with some notion of “sustainability.” This reflects growing concerns about environmental quality and about the depletion of oil reserves and other natural resource stocks. Economists and natural scientists have offered several notions of sustainability. An especially important notion—and the one on which this chapter focuses—is defined with reference to human wellbeing. This notion of sustainability is achieved if the current generation leaves the next one with the capacity to enjoy the same or higher quality of life. Standard measures in the national income accounts—such as changes in per-capita GDP—may offer hints of whether a nation meets this sustainability criterion, but as is well known these measures do not fully capture many important contributors to well-being, such as the changes in the stocks of natural capital or in environmental quality.
41 citations
TL;DR: The authors considers the evolution of modern economic theory from the perspective of the author's biography as a scientist and his professional formation, and describes problems of econometrics, general equilibrium theory, uncertainty, economics of information, and growth.
Abstract: The article considers the evolution of some branches of modern economic theory from the perspective of the author’s biography as a scientist and his professional formation. It describes problems of econometrics, general equilibrium theory, uncertainty, economics of information, and growth. It is shown how different authors representing various fields came to similar conclusions simultaneously and independently, what were the problems, in response to which economists of the second half of last century developed their theories, and what were the contexts of such development.
16 citations
Posted Content•
TL;DR: This article developed a consistent and comprehensive theoretical framework for assessing whether economic growth is compatible with sustaining well-being over time, and applied the framework to five countries that differ significantly in stages of development and resource bases: the United States, China, Brazil, India, and Venezuela.
Abstract: We develop a consistent and comprehensive theoretical framework for assessing whether economic growth is compatible with sustaining well-being over time. The framework focuses on whether a comprehensive measure of wealth - one that accounts for natural capital and human capital as well as reproducible capital - is maintained through time. Our framework also integrates population growth, technological change, and changes in health. We apply the framework to five countries that differ significantly in stages of development and resource bases: the United States, China, Brazil, India, and Venezuela. With the exception of Venezuela, significant increases in human capital enable comprehensive wealth to be maintained (and sustainability to be achieved) despite significant reductions in the natural resource base. We find that the value of "health capital" is very large relative to other forms of capital. As a result, its growth rate critically influences the growth rate of per-capita comprehensive wealth.
13 citations
01 Jan 2010
2 citations
01 Jan 2010
TL;DR: The extent of genetic diversity in food crops is important as it affects the risk of attack by pathogens as discussed by the authors, and a drop in diversity increases this risk. But farmers may not take this into account when making crop choices, leading to what from a social perspective is an inadequate level of diversity.
Abstract: The extent of genetic diversity in food crops is important as it affects the risk of attack by pathogens. A drop in diversity increases this risk. Farmers may not take this into account when making crop choices, leading to what from a social perspective is an inadequate level of diversity.
1 citations
01 Jan 2010
1 citations
01 Jan 2010
1 citations
01 Jan 2010
TL;DR: The importance of ecosystem services is widely appreciated only upon their loss as mentioned in this paper, and the importance of ecosystems have value in terms of the conservation of options (such as genetic diversity for future use).
Abstract: The world's ecosystems are capital assets. If properly managed, they yield a flow of vital services, including the production of goods (such as seafood and timber), life support processes (such as pollination and water purification), and life-fulfilling conditions (such as beauty and serenity). Moreover, ecosystems have value in terms of the conservation of options (such as genetic diversity for future use) (1). Unfortunately, relative to other forms of capital, ecosystems are poorly understood, scarcely monitored, and (in many cases) undergoing rapid degradation and depletion. Often the importance of ecosystem services is widely appreciated only upon their loss.
TL;DR: In this article, the authors present a critical selection of key papers by the Nobel Memorial Laureates in Economics that have helped shape the development and present state of economics, focusing on those Laureates working in the same broad area of study.
Abstract: This groundbreaking series brings together a critical selection of key papers by the Nobel Memorial Laureates in Economics that have helped shape the development and present state of economics. The editors have organised this comprehensive series by theme and each volume focuses on those Laureates working in the same broad area of study. The careful selection of papers within each volume is set in context by an insightful introduction to the Laureates’ careers and main published works. This landmark series will be an essential reference for scholars throughout the world.