Template-type: ReDIF-Paper 1.0
Author-Name: La Torre, Davide
Author-Email: davide.latorre@unimi.it
Author-Name: Marsiglio, Simone 
Author-Email: simonem@uow.edu.au
Author-Name: Privileggi, Fabio 
Author-Email: fabio.privileggi@unito.it
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: Fractal Attractors in Economic Growth Models with Random Pollution Externalities
Abstract: We analyze a discrete time two-sector economic growth model where the production technologies in the final and human 
capital sectors are affected by random shocks both directly (via productivity and factor shares) and indirectly (via a pollution 
externality). We determine the optimal dynamics in the decentralized economy and show how these dynamics can be described in terms
of a two-dimensional affine iterated function system with probability. This allows us to identify a suitable parameter configuration 
capable of generating exactly the classical Barnsley’s fern as the attractor of the log-linearized optimal dynamical system.
Length: pages 19
Creation-Date: 2018-02
File-URL:http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2018dip/wp_1_2018.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:201801