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Hopf bifurcation in an overlapping generations resource economy with endogenous population growth rate

  • Burcu Fazlıoğlu , Hüseyin Çağrı Sağlam and Mustafa Kerem Yüksel EMAIL logo
Published/Copyright: March 25, 2016

Abstract

As scarce environmental resources necessarily put a constraint on population growth, we use more realistic population growth dynamics which contemplates a feedback mechanism between population growth rate and resource availability. We examine the local stability properties in overlapping generations resource economies which takes this feedback mechanism into account. The results indicate that Hopf bifurcation may arise without requiring logistic regeneration or unconventional constraints on parameter values. In particular, Hopf bifurcation is encountered under convex-concave dependence of carrying capacity on the resource availability.

JEL Classification: D90; Q20; J10; C6

Corresponding author: Mustafa Kerem Yüksel, Department of International Trade and Finance – University of Turkish Aeronautical Association, Ankara, Turkey; and Department of Economics – Bilkent University, Ankara, Turkey

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Published Online: 2016-3-25
Published in Print: 2016-12-1

©2016 Walter de Gruyter GmbH, Berlin/Boston

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