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Vol. 55, No. 1, pp. 15-25 (2004)

“Maximin Path in the Arrow-Dasgupta Economy with Environmental Externality”
Koichi Suga (School of Political Science and Economics, Waseda University)

This paper examines the role environmental externality in the Arrow-Dasgupta economy with altruism. It is shown that some of the previous results hold true as they are, but others slightly change. Firstly generation 0 is stil the worst-off. Secondly, if the maginal productivity of capital is greater than the rate of time preference in a broad sense, all generations enjoy the same levels of utility and consumption, and make no saving. Thirdly, if not, two possibilities occur. One is increasing utility, and the other is increasing saving.