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Growth model with externalities for energetic transition via MFG with common external variable
[Modèle de croissance avec externalités pour la transition énergétique via MFG avec variable externe commune]

Author

Listed:
  • Pierre Lavigne

    (UniCA - Université Côte d'Azur)

  • Quentin Petit

    (EDF - EDF)

  • Xavier Warin

    (EDF - EDF)

Abstract

This article introduces a novel mean-field game model for multi-sector economic growth in which a dynamically evolving externality, influenced by the collective actions of agents, plays a central role. Building on classical growth theories and integrating environmental considerations, the framework incorporates "common noise" to capture shared uncertainties among agents about the externality variable. We demonstrate the existence and uniqueness of a strong mean-field game equilibrium by reformulating the equilibrium conditions as a Forward-Backward Stochastic Differential Equation under the stochastic maximum principle and establishing a contraction argument to ensure a unique solution. We provide a numerical resolution for a specified model using a fixed-point approach combined with neural network approximations.

Suggested Citation

  • Pierre Lavigne & Quentin Petit & Xavier Warin, 2025. "Growth model with externalities for energetic transition via MFG with common external variable [Modèle de croissance avec externalités pour la transition énergétique via MFG avec variable externe c," Working Papers hal-04902499, HAL.
  • Handle: RePEc:hal:wpaper:hal-04902499
    Note: View the original document on HAL open archive server: https://hal.science/hal-04902499v1
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