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Hopf bifurcation in an overlapping generations resource economy with endogenous population growth rate

Author

Listed:
  • Fazlıoğlu Burcu

    (Department of International Entrepreneurship – TOBB ETU University, Ankara, Turkey)

  • Sağlam Hüseyin Çağrı

    (Department of Economics – Bilkent University, Ankara, Turkey)

  • Yüksel Mustafa Kerem

    (Department of Economics – Bilkent University, Ankara, Turkey)

Abstract

As scarce environmental resources necessarily put a constraint on population growth, we use more realistic population growth dynamics which contemplates a feedback mechanism between population growth rate and resource availability. We examine the local stability properties in overlapping generations resource economies which takes this feedback mechanism into account. The results indicate that Hopf bifurcation may arise without requiring logistic regeneration or unconventional constraints on parameter values. In particular, Hopf bifurcation is encountered under convex-concave dependence of carrying capacity on the resource availability.

Suggested Citation

  • Fazlıoğlu Burcu & Sağlam Hüseyin Çağrı & Yüksel Mustafa Kerem, 2016. "Hopf bifurcation in an overlapping generations resource economy with endogenous population growth rate," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 20(5), pages 607-621, December.
    • Handle: RePEc:bpj:sndecm:v:20:y:2016:i:5:p:607-621:n:1
    DOI: 10.1515/snde-2014-0007
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    References listed on IDEAS

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    1. Seegmuller, Thomas & Verchère, Alban, 2007. "A Note On Indeterminacy In Overlapping Generations Economies With Environment And Endogenous Labor Supply," Macroeconomic Dynamics, Cambridge University Press, vol. 11(3), pages 423-429, June.
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    3. Koskela, Erkki & Ollikainen, Markku & Puhakka, Mikko, 2002. "Renewable Resources in an Overlapping Generations Economy Without Capital," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 497-517, May.
    4. Antoci, Angelo & Sodini, Mauro, 2009. "Indeterminacy, bifurcations and chaos in an overlapping generations model with negative environmental externalities," Chaos, Solitons & Fractals, Elsevier, vol. 42(3), pages 1439-1450.
    5. de la Croix,David & Michel,Philippe, 2002. "A Theory of Economic Growth," Cambridge Books, Cambridge University Press, number 9780521001151, September.
    6. Grandmont, Jean-Michel & Pintus, Patrick & de Vilder, Robin, 1998. "Capital-Labor Substitution and Competitive Nonlinear Endogenous Business Cycles," Journal of Economic Theory, Elsevier, vol. 80(1), pages 14-59, May.
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    More about this item

    Keywords

    endogenous population growth; hopf bifurcation; overlapping generations model; renewable resource;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling

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