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Recycling and Endogenous Cycles

Author

Listed:
  • Mouez Fodha

    (LEO - University of Orléans, Department of Law, Economics and Business Administration, France)

  • Francesco Magris

    (GERCIE - University “François Rabelais” of Tours, Department of Law, Economics and Social Sciences, France)

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.

Suggested Citation

  • Mouez Fodha & Francesco Magris, 2012. "Recycling and Endogenous Cycles," Economic Research Guardian, Weissberg Publishing, vol. 2(2), pages 241-250, December.
    • Handle: RePEc:wei:journl:v:2:y:2012:i:2:p:241-250
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    More about this item

    Keywords

    Endogenous fluctuations; Recycling activity;

    JEL classification:

    • 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

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