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Pollution and infectious diseases

Résumé : Recent empirical contributions highlight the negative impact of pollution on labor supply. This relationship is explained by two mechanisms: first, pollution modifies agents’ work–leisure trade‐off as it deteriorates their working conditions (incentive effect); and second, a polluted environment is likely to generate more frequent epidemic outbreaks and to affect agents’ immune systems (health effect). Bosi et al. (2015) explore the aggregate consequences of the incentive effect and show that it can generate endogenous fluctuations in the economic activity. The present paper focuses on the health effect as we study a Ramsey model augmented with the spread of infectious disease. We find that industrial pollution may generate limit cycles around an endemic steady state. More precisely, the economic system may undergo a transcritical bifurcation followed by two Hopf bifurcations near this steady state.
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https://hal.univ-lorraine.fr/hal-02275323
Contributor : Séverine Baldasso <>
Submitted on : Friday, August 30, 2019 - 4:05:57 PM
Last modification on : Tuesday, March 17, 2020 - 1:59:53 AM

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Stefano Bosi, David Desmarchelier. Pollution and infectious diseases. International Journal of Economic Theory, Wiley, 2018, 14 (4), pp.351-372. ⟨10.1111/ijet.12157⟩. ⟨hal-02275323⟩

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