Indeterminacy, bifurcations and chaos in an overlapping generations model with negative environmental externalities
نویسندگان
چکیده
We analyze an overlapping generations model where agent’s welfare depends on three goods: leisure, environmental quality and consumption of a private good. We assume that the production process of the private good depletes the natural resource and that the consumption of the private good alleviates the damages due to environmental deterioration. In such context, we show that individuals’ reactions to environmental deterioration may lead to complex dynamics, in particular to the rise of periodic orbits and chaos.
منابع مشابه
Local and global indeterminacy in an overlapping generations model with consumption externalities
We analyze an overlapping generations model where individuals’ wellbeing is negatively affected by the economy-wide average consumption level. Each individual aims at increasing his consumption level relatively to that of the others. We show that this "positional competition" can generate (local and global) indeterminacy and chaos. Mathematics Subject Classifications (2000): 37N40, 37M20, 39A11
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