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

Thomas Seegmuller (1) , Alban Verchère (2)

1 CES - Centre d'économie de la Sorbonne
2 PREACTIS - Centre de Recherche en Gestion

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.

Mots clés: Environment; labor supply; overlapping generations; indeterminacy; endogenous cycles

Domaines: Economies et finances

Thomas Seegmuller, Alban Verchère. A Note on Indeterminacy in Overlapping Generations Economies with Environment and Endogenous Labor Supply. Macroeconomic Dynamics, 2007, 11 (3), pp.423-429. ⟨10.1017/S1365100506060093⟩. ⟨halshs-00194230⟩