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

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  • Koskela, E.
  • Ollikainen, M.
  • Puhakka, M.

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.

Suggested Citation

  • Koskela, E. & Ollikainen, M. & Puhakka, M., 2000. "Saddles, Indeterminacy and Bifurcations in an Overlapping Generations Economy with a Renewable Resource," University of Helsinki, Department of Economics 476, Department of Economics.
    • Handle: RePEc:fth:helsec:476
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    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

    Keywords

    GENERATIONS ; ENVIRONMENT ; MATHEMATICAL ANALYSIS;
    All these keywords.

    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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