This paper analyzes an intertemporal optimization problem in which agents derive utility from three goods: leisure, a public environmental good and the consumption of a produced good. The global analysis of the dynamic system generated by the optimization problem shows that global indeterminacy may arise: given the initial values of the state variables, the economy may converge to different steady states, by choosing different initial values of the control variable.

Environmental degradation and indeterminacy of equilibrium selection / Antoci, A.; Galeotti, M.; Sodini, M.. - In: DISCRETE AND CONTINUOUS DYNAMICAL SYSTEMS. SERIES B.. - ISSN 1531-3492. - 26:11(2021), pp. 5755-5767. [10.3934/DCDSB.2021179]

Environmental degradation and indeterminacy of equilibrium selection

Sodini M.
2021

Abstract

This paper analyzes an intertemporal optimization problem in which agents derive utility from three goods: leisure, a public environmental good and the consumption of a produced good. The global analysis of the dynamic system generated by the optimization problem shows that global indeterminacy may arise: given the initial values of the state variables, the economy may converge to different steady states, by choosing different initial values of the control variable.
2021
Environmental degradation and indeterminacy of equilibrium selection / Antoci, A.; Galeotti, M.; Sodini, M.. - In: DISCRETE AND CONTINUOUS DYNAMICAL SYSTEMS. SERIES B.. - ISSN 1531-3492. - 26:11(2021), pp. 5755-5767. [10.3934/DCDSB.2021179]
File in questo prodotto:
File Dimensione Formato  
Environ_PrePrint.pdf

accesso aperto

Tipologia: Versione Editoriale (PDF)
Licenza: Creative commons
Dimensione 288.11 kB
Formato Adobe PDF
288.11 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11588/869352
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 2
  • ???jsp.display-item.citation.isi??? 2
social impact