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Saddles, Indeterminacy and Bifurcations in an Overlapping Generations Economy with a Renewable Resource

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  • Erkki Koskela

    (University of Helsinki)

  • Markku Ollikainen

    (University of Helsinki)

  • Mikko Puhakka

    (University of Helsinki)

Abstract

We incorporate a renewable resource into an overlapping generations model with standard, well-behaved utility and constant returns to scale production functions. Besides being a factor of production the resource serves as a store of value. We characterize dynamics, efficiency and stability of steady state equilibria and show that the nature of steady state equilibrium depends on the value of the intertemporal elasticity of substitution in consumption.
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Suggested Citation

  • Erkki Koskela & Markku Ollikainen & Mikko Puhakka, 2000. "Saddles, Indeterminacy and Bifurcations in an Overlapping Generations Economy with a Renewable Resource," Econometric Society World Congress 2000 Contributed Papers 1810, Econometric Society.
    • Handle: RePEc:ecm:wc2000:1810
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    Cited by:

    1. Karp, Larry & Paul, Thierry, 2007. "Indeterminacy with environmental and labor dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 18(1), pages 100-119, March.
    2. Andreas Wagener, 2003. "Equilibrium dynamics with different types of pay-as-you-go pension schemes," Economics Bulletin, AccessEcon, vol. 8(6), pages 1-12.
    3. repec:ebl:ecbull:v:8:y:2003:i:6:p:1-12 is not listed on IDEAS

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    More about this item

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium

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