Skip to main content Accessibility help
×
Hostname: page-component-69cd664f8f-p7d4h Total loading time: 0 Render date: 2025-03-12T12:13:02.921Z Has data issue: false hasContentIssue false

Chapter 13* - Accounting Prices and Inclusive Wealth

from Part I - Foundations

Published online by Cambridge University Press:  10 March 2025

Partha Dasgupta
Affiliation:
University of Cambridge
Get access

Summary

Here we derive equations for optimum allocations of goods and services in the global economic model of Chapter 4*. The equations are dynamic, and represent rules for determining the optimum mix of consumption and investment in capital goods. The criterion for optimality adopted here is the present value of well-being across the generations (Chapter 10). For vividness, we may imagine that the social evaluator, who was introduced in Chapter 10, performs the optimisation exercise and derives the movement of accounting prices of goods and services over time. The procedure is at the heart of a decentralised economy guided by the state on matters where the price system performs badly. We confirm that the dynamical equations that govern the movement of accounting prices are none other than the arbitrage conditions of Chapter 1 (Box 1.3). That is why in Chapter 10 the social evaluator was also referred to as the citizen investor.

Type
Chapter
Information
The Economics of Biodiversity
The Dasgupta Review
, pp. 363 - 370
Publisher: Cambridge University Press
Print publication year: 2024

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×