Munich Personal RePEc Archive

Indeterminacy, bifurcations and chaos in an overlapping generations model with negative environmental externalities

Antoci, Angelo and Sodini, Mauro (2009): Indeterminacy, bifurcations and chaos in an overlapping generations model with negative environmental externalities.

[img]
Preview
PDF
MPRA_paper_13750.pdf

Download (228Kb) | Preview

Abstract

We analyze an overlapping generations model where agent’s welfare depends on three goods: leisure, environmental quality and consumption of a private good. We assume that the production process of the private good depletes the natural resource and that the consumption of the private good alleviates the damages due to environmental deterioration. In such context, we show that individuals’ reactions to environmental deterioration may lead to complex dynamics, in particular to the rise of periodic orbits and chaos.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.