Life Cycle Of Products And Cycles
AbstractThe aim of this paper is to examine whether the development of waste recycling activities can be a source of economic fluctuation. We assume that the recycling sector has four fundamental characteristics. (i) The production factors are restricted by the production of the last period. (ii) These production factors are waste for which the price determination is non-competitive. (iii) It produces a recycled good, which is a perfect substitute to th primary good. (iv) It reduces waste stream. We consider the simplest economy with an infinitely lived agent and a life cycle hypothesis for the goods. We show that the equilibrium is unique and is always determinate. In spite of the lack of indeterminacy, however, our system can display cyclical behavior, depending on some usual conditions on parameters. Namely, the steady-state may undergo a Flip and a Hopf bifurcation.
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Bibliographic InfoArticle provided by Cambridge University Press in its journal Macroeconomic Dynamics.
Volume (Year): 14 (2010)
Issue (Month): 02 (April)
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Other versions of this item:
- Jean De Beir & Mouez Fodha & Francesco Magris, 2008. "Life cycle of products and cycles," Documents de travail du Centre d'Economie de la Sorbonne v08091, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Jean De Beir & Mouez Fodha & Francesco Magris, 2009. "Life Cycle of Products and Cycles," Documents de recherche 09-16, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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