Multiple attractors and dynamics in an OLG model with productive environment

This work analyses an overlapping generations model in which economic activity depends on the exploitation of a free-access natural resource. In addition, public expenditures for environmental maintenance are assumed. By characterising some properties of the map and performing numerical simulations, we investigate consequences of the interplay between environmental public expenditure and private sector. In particular, we identify different scenarios in which multiple equilibria as well as complex dynamics may arise.