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A NOTE ON INDETERMINACY IN OVERLAPPING GENERATIONS ECONOMIES WITH ENVIRONMENT AND ENDOGENOUS LABOR SUPPLY

Published online by Cambridge University Press:  26 April 2007

THOMAS SEEGMULLER  and
ALBAN VERCHÈRE
THOMAS SEEGMULLER
Affiliation:
CNRS and CES
ALBAN VERCHÈRE
Affiliation:
PREACTIS, Saint-Etienne University
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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.

Keywords

EnvironmentLabor SupplyOverlapping GenerationsIndeterminacyEndogenous Cycles
Type
NOTES
Information
Macroeconomic Dynamics , Volume 11 , Issue 3 , June 2007 , pp. 423 - 429
Copyright
© 2007 Cambridge University Press

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