@article{oai:nagoya.repo.nii.ac.jp:00009681, author = {Okumura, Ryuhei and 奥村, 隆平 and Cai, Dapeng and 蔡, 大鵬}, issue = {2}, journal = {The Japanese Economic Review}, month = {}, note = {To sustain constant consumption, Hartwick’s rule prescribes reinvesting all resource rents in reproducible capital. However, Hartwick’s rule is not necessarily the result of optimization. In this paper, we address this insufficiency by deriving a constant consumption path endogenously in a semi-open economy with an exhaustible resource, which has full access to world goods and capital markets, while the resource flows are not internationally tradable. Our findings show that, due to the essentiality of both capital and resource to the production process, the economy transforms its domestic assets into foreign ones, ending up consuming a constant interest flow from the latter., The official English language publication of the Japanese Economic Association}, pages = {226--237}, title = {Sustainable Constant Consumption in a Semi-open Economy with Exhaustible Resources}, volume = {58}, year = {2007} }