Economic growth with brown or green capital
Résumé
This paper explores a growth model with capital that can be "brown" or "green," impacting other firms’ total factor productivity (TFP). Brown capital acts as a negative externality, lowering productivity, while green capital, either human or natural, spills over and generates positive externalities, boosting productivity. We prove the existence of a competitive equilibrium with these externalities and demonstrate the occurrence of
two-period cycles through local and global stability analysis. Notably, cycles in the case of negative externalities require strong intertemporal income effects, while positive externalities lead to cycles with significant substitution effects.
Fichier principal
Economic growth with brown or green capital-20240601.pdf (511.84 Ko)
Télécharger le fichier
Origine | Fichiers produits par l'(les) auteur(s) |
---|