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 fluctuations. 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 the 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne in its series Documents de recherche with number 09-16.
Length: 20 pages
Date of creation: 2009
Date of revision:
cycles; recycling; waste;
Other versions of this item:
- Jean De Beir & Mouez Fodha & Francesco Magris, 2008. "Life Cycle of Products and Cycles," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00348862, HAL.
- 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.
- 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.:
- Don Fullerton & Wenbo Wu, 1996.
"Policies for Green Design,"
NBER Working Papers
5594, National Bureau of Economic Research, Inc.
- Michele Boldrin & Aldo Rustichini, 2010.
"Growth and Indeterminacy in Dynamic Models with Externalities,"
Levine's Working Paper Archive
1382, David K. Levine.
- Boldrin, Michele & Rustichini, Aldo, 1994. "Growth and Indeterminacy in Dynamic Models with Externalities," Econometrica, Econometric Society, vol. 62(2), pages 323-42, March.
- Choe, Chongwoo & Fraser, Iain, 1999.
"An Economic Analysis of Household Waste Management,"
Journal of Environmental Economics and Management,
Elsevier, vol. 38(2), pages 234-246, September.
- Chongwoo Choe & Iain Fraser, 1997. "An Economic Analysis of Household Waste Management," Working Papers 1997.11, School of Economics, La Trobe University.
- Thomas Seegmuller & Alban Verchère, 2007.
"A Note on Indeterminacy in Overlapping Generations Economies with Environment and Endogenous Labor Supply,"
UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers)
- Seegmuller, Thomas & Verch Re, Alban, 2007. "A Note On Indeterminacy In Overlapping Generations Economies With Environment And Endogenous Labor Supply," Macroeconomic Dynamics, Cambridge University Press, vol. 11(03), pages 423-429, June.
- Martin, Robert E, 1982. "Monopoly Power and the Recycling of Raw Materials," Journal of Industrial Economics, Wiley Blackwell, vol. 30(4), pages 405-19, June.
- Grant, Darren, 1999. "Recycling and market power: A more general model and re-evaluation of the evidence1," International Journal of Industrial Organization, Elsevier, vol. 17(1), pages 59-80, January.
- Palmer, Karen & Walls, Margaret, 1997. "Optimal policies for solid waste disposal Taxes, subsidies, and standards," Journal of Public Economics, Elsevier, vol. 65(2), pages 193-205, August.
- Rafael Lusky, 1976. "A Model of Recycling and Pollution Control," Canadian Journal of Economics, Canadian Economics Association, vol. 9(1), pages 91-101, February.
- Don Fullerton & Thomas C. Kinnaman, 1996.
"Garbage, Recycling, and Illicit Burning or Dumping,"
NBER Working Papers
4374, National Bureau of Economic Research, Inc.
- Fullerton Don & Kinnaman Thomas C., 1995. "Garbage, Recycling, and Illicit Burning or Dumping," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 78-91, July.
- Swan, Peter L, 1980. "Alcoa: The Influence of Recycling on Monopoly Power," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 76-99, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Samuel Nosel).
If references are entirely missing, you can add them using this form.