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Bifurcations and chaotic attractors in an overlapping generations model with negative environmental externalities. (English) Zbl 1189.37104

Bischi, Gian Italo (ed.) et al., Nonlinear dynamics in economics, finance and the social sciences. Essays in honour of John Barkley Rosser jun. Selected papers of the 5th workshop on dynamic models in economics and finance (MDEF), Urbino, Italy, September 25–27, 2008. Dordrecht: Springer (ISBN 978-3-642-04022-1/hbk;978-3-642-04023-8/ebook). 39-53 (2010).
From the abstract: We analyze an overlapping generations model with the following features. There exists a continuum of identical individuals whose welfare depends on leisure, on the stock E of a free access environmental good and on the consumption C of a private good. The private good is produced by a continuum of identical perfectly competitive firms via a constant returns technology (represented by a Cobb-Douglas production function); the representative firm uses physical capitalK and labour L of the representative individual as productive inputs. Each economic agent considers as negligible the negative impact of his choices on the environmental good; this implies that the choices of each agent generate negative externalities on the others.
For the entire collection see [Zbl 1184.37003].

MSC:

37N40 Dynamical systems in optimization and economics
91B76 Environmental economics (natural resource models, harvesting, pollution, etc.)
37D45 Strange attractors, chaotic dynamics of systems with hyperbolic behavior
91B15 Welfare economics
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