Life Cycle of Products and Cycles
The aim of this paper is to examine whether the development of waste recycling activities can be a source of economic fluctuation. 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 th 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.
|Date of creation:||May 2008|
|Date of revision:|
|Publication status:||Published in Documents de travail du Centre d'Economie de la Sorbonne 2008.91 - ISSN : 1955-611X. 2008|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00348862|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
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.:
- 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.
- Don Fullerton & Thomas C. Kinnaman, 1993.
"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.
- Chongwoo Choe & Iain Fraser, 1997.
"An Economic Analysis of Household Waste Management,"
1997.11, School of Economics, La Trobe University.
- 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.
- 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.
- Don Fullerton & Wenbo Wu, 1996.
"Policies for Green Design,"
NBER Working Papers
5594, National Bureau of Economic Research, Inc.
- Valerie Y. Suslow, 1986. "Estimating Monopoly Behavior with Competitive Recycling: An Application to Alcoa," RAND Journal of Economics, The RAND Corporation, vol. 17(3), pages 389-403, Autumn.
- 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.
- Seegmuller, Thomas & Verch Re, Alban, 2007.
"A Note On Indeterminacy In Overlapping Generations Economies With Environment And Endogenous Labor Supply,"
Cambridge University Press, vol. 11(03), pages 423-429, June.
- Thomas Seegmuller & Alban Verchère, 2007. "A Note on Indeterminacy in Overlapping Generations Economies with Environment and Endogenous Labor Supply," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00194230, HAL.
- 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.
- Gaskins, Darius Jr., 1974. "Alcoa revisited: The welfare implications of a secondhand market," Journal of Economic Theory, Elsevier, vol. 7(3), pages 254-271, March.
- Rafael Lusky, 1976. "A Model of Recycling and Pollution Control," Canadian Journal of Economics, Canadian Economics Association, vol. 9(1), pages 91-101, February.
- 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.
When requesting a correction, please mention this item's handle: RePEc:hal:cesptp:halshs-00348862. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
If references are entirely missing, you can add them using this form.