Each was forced into the final outcome by the logic of long-run optimization within institutional constraints.
Unlike all existing models without scale effects, in this model population size has no long-run level effect on per-capita consumption.
Section 3 solves the model graphically and analyzes the dynamics around the long-run equilibrium.
The steady state real interest rate r is set at r = 0.01, a value that corresponds roughly to the long-run average (quarterly) return on capital.
They both reduce market risk and volatility and increase long-run average returns to producers.
Therefore, neither producers nor consumers can know the long-run environmental implications for any decisions they are making with respect to the use of transgenic crops.
Targeting 'users' of the ecosystem services - tourists visiting the area on a safari - is likely a more viable long-run option for the payment scheme.
The estimates of the probability of voting for the government will be misspecified if this long-run attachment is not taken into account.
