Environmental degradation and indeterminacy of equilibrium selection
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<p style='text-indent:20px;'>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.</p>
2014 ◽
Vol 635-637
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pp. 1431-1437
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2015 ◽
Vol 6
(3)
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pp. 486
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1968 ◽
Vol 13
(5)
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pp. 573-575
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2021 ◽
Keyword(s):
2017 ◽
Vol 132
(3-II)
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pp. 1066-1069
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