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Nonlinear Dynamics in an OLG Growth Model with Young and Old Age Labour Supply: The Role of Public Health Expenditure

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  • Luca Gori

    ()

  • Mauro Sodini

    ()

Abstract

This paper analyses the dynamics of a two-dimensional overlapping generations model with young and old age labour supply. It is shown that the public provision of health investments, which, in turn, affects the demand for material consumption, may represent a source of local indeterminacy, nonlinear dynamics and multiplicity of equilibria. Furthermore, global indeterminacy may also occur because of the co-existence of two attractors with tangled basins of attraction.

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Bibliographic Info

Article provided by Society for Computational Economics in its journal Computational Economics.

Volume (Year): 38 (2011)
Issue (Month): 3 (October)
Pages: 261-275

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Handle: RePEc:kap:compec:v:38:y:2011:i:3:p:261-275

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Web page: http://www.springerlink.com/link.asp?id=100248
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Keywords: Chaos; Labour supply; OLG model; Public health expenditure; C62; C68; I18; J22; O41;

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Cited by:
  1. Luca Gori & Mauro Sodini, 2014. "Indeterminacy and nonlinear dynamics in an OLG growth model with endogenous labour supply and inherited tastes," Decisions in Economics and Finance, Springer, vol. 37(1), pages 159-179, April.
  2. Luciano Fanti & Luca Gori, 2012. "Public Expenditure on Health and Private Old-Age Insurance in an OLG Growth Model with Endogenous Fertility: Chaotic Dynamics Under Perfect Foresight," Computational Economics, Society for Computational Economics, vol. 40(4), pages 333-353, December.

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