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A Note On Indeterminacy In Overlapping Generations Economies With Environment And Endogenous Labor Supply

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  • SEEGMULLER, THOMAS
  • VERCHÈRE, ALBAN

Abstract

We consider an overlapping generations model with environment and an elastic labor supply. In this framework, consumers have to choose between consumption, environmental quality, and leisure. We show the existence of both deterministic cycles and indeterminacy. In contrast to previous results, the emergence of endogenous fluctuations does not require a high emission rate of pollution.

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  • 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.
    • Handle: RePEc:cup:macdyn:v:11:y:2007:i:03:p:423-429_06
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    1. Benhabib Jess & Farmer Roger E. A., 1994. "Indeterminacy and Increasing Returns," Journal of Economic Theory, Elsevier, vol. 63(1), pages 19-41, June.
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    6. Seegmuller, Thomas & Verchere, Alban, 2004. "Pollution as a source of endogenous fluctuations and periodic welfare inequality in OLG economies," Economics Letters, Elsevier, vol. 84(3), pages 363-369, September.
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    Cited by:

    1. Bosi, Stefano & Desmarchelier, David, 2013. "Demography and pollution," Research in Economics, Elsevier, vol. 67(4), pages 316-323.
    2. 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.
    3. De Beir, Jean & Fodha, Mouez & Magris, Francesco, 2010. "Life Cycle Of Products And Cycles," Macroeconomic Dynamics, Cambridge University Press, vol. 14(2), pages 212-230, April.
    4. Stefano Bosi & David Desmarchelier & Lionel Ragot, 2015. "Pollution effects on labor supply and growth," International Journal of Economic Theory, The International Society for Economic Theory, vol. 11(4), pages 371-388, December.
    5. Mouez Fodha & Thomas Seegmuller, 2010. "Environmental Policy and Public Debt Stabilization," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00512789, HAL.
    6. Stefano Bosi & David Desmarchelier & Lionel Ragot, 2015. "Preferences and pollution cycles," Working Papers hal-04141382, HAL.

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