|
| |
| Thomas Seegmuller |
| |
| ''Endogenous fluctuations and public services in a simple OLG economy'' |
| ( 2003, Vol. 5 No.10 ) |
| |
| |
| In a simple OLG model, we introduce public services which work as a source of utility. Assuming constant returns to scale in the production, we show that public services promote the occurrence of local indeterminacy. In contrast to a lot of existing contributions which have exploited productive externalities, this paper establishes that the existence of externalities in the utility function can explain the emergence of endogenous fluctuations. |
| |
| |
| Keywords: Endogenous fluctuations |
JEL: E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
H4 - Publicly Provided Goods: General |
| |
| Manuscript Received : Feb 20 2003 | | Manuscript Accepted : May 22 2003 |
|
