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Recycling and Endogenous Cycles

Mouez Fodha and Francesco Magris

Economic Research Guardian, 2012, vol. 2, issue 2, 241-250

Abstract: This article investigates the conditions under which deterministic cycles can emerge in a discrete-time model with infinitely lived agents and when the economy is characterized by two sectors producing two perfectly substitutable goods: a virgin good and a recycled one. The occurrence of deterministic fluctuations rests upon the countercyclical behavior of the recycling industry: an increase in present consumption implies a lower future waste activity together with a lower agents' total income, yielding a decline in next period consumption.

Keywords: Endogenous fluctuations; Recycling activity (search for similar items in EconPapers)
JEL-codes: E32 Q53 (search for similar items in EconPapers)
Date: 2012
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