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A Note on Indeterminacy in Overlapping Generations Economies with Environment and Endogenous Labor Supply

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  • Thomas Seegmuller

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Alban Verchère

    (PREACTIS - Centre de Recherche en Gestion - UJM - Université Jean Monnet - Saint-Étienne)

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.

Suggested Citation

  • Thomas Seegmuller & Alban Verchère, 2007. "A Note on Indeterminacy in Overlapping Generations Economies with Environment and Endogenous Labor Supply," Post-Print halshs-00194230, HAL.
    • Handle: RePEc:hal:journl:halshs-00194230
    DOI: 10.1017/S1365100506060093
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00194230
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    References listed on IDEAS

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    1. Hansen, Gary D., 1985. "Indivisible labor and the business cycle," Journal of Monetary Economics, Elsevier, vol. 16(3), pages 309-327, November.
    2. Xepapadeas, Anastasios, 2005. "Economic growth and the environment," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 23, pages 1219-1271, Elsevier.
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    7. Grandmont, Jean-Michel, 1985. "On Endogenous Competitive Business Cycles," Econometrica, Econometric Society, vol. 53(5), pages 995-1045, September.
    8. Thomas SEEGMULLER & Alban VERCHÈRE, 2005. "Environment in an Overlapping Generations Economy with Endogenous Labor Supply : a Dynamic Analysis," Working Papers of BETA 2005-05, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    9. 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.
    10. Benhabib, Jess & Farmer, Roger E.A., 1999. "Indeterminacy and sunspots in macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 6, pages 387-448, Elsevier.
    11. Cazzavillan, Guido & Lloyd-Braga, Teresa & Pintus, Patrick A., 1998. "Multiple Steady States and Endogenous Fluctuations with Increasing Returns to Scale in Production," Journal of Economic Theory, Elsevier, vol. 80(1), pages 60-107, May.
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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. 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.
    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. "Preferences and pollution cycles," Working Papers hal-04141382, HAL.
    5. 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.
    6. Mouez Fodha & Thomas Seegmuller, 2010. "Environmental Policy and Public Debt Stabilization," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00512789, HAL.

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