Complicated endogenous business cycles under gross substitutability

Article Abstract:

A two-dimensional overlapping generations model with capital accumulation and productive investment is analyzed to determine the behavior of output equilibrium time paths. These equilibrium paths occur due to the existence of 'strange Henon-like attractors,' 'Newhouse phenomenon,' 'period-doubling cascades,' and 'Smale horseshoes' in the model. The paths are also observed to converge to periodic and chaotic attractors whenever the income effect is dominated by the substitution effect.

Analysis, Business cycles

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On the optimal order of natural resource use when the capacity of the inexhaustible substitute is limited

Article Abstract:

A model is developed where the marginal cost of extracting from several deposits of an exhaustible resource reaches optimal levels when the extraction process is done on first on the deposit which entails greater cost. This runs contrary to the intuitive concept of starting first with the deposit which presents lower cost of extraction. This is due to the action of several factors, including labor costs, and analysis of welfare factors.

Economics, Research and Development in the Social Sciences and Humanities, Natural Resource Programs NEC, Administration of Environmental Quality Programs, Economic aspects, Natural resource policy, Mineral deposits, Mines and mineral resources, Mining, Nonrenewable natural resources, Nonrenewable resources

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