Indeterminacy, bifurcations and chaos in an overlapping generations model with negative environmental externalities

Angelo Antoci and Mauro Sodini

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: Defensive environmental expenditures; overlapping generations models; indeterminacy; undesirable economic growth (search for similar items in EconPapers)
JEL-codes: C02 D62 O13 Q20 Q26 Q56 (search for similar items in EconPapers)
Date: 2009-02
New Economics Papers: this item is included in nep-dge and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Journal Article: Indeterminacy, bifurcations and chaos in an overlapping generations model with negative environmental externalities (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:13750

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