The delayed effect of pollution on health: A source of endogenous fluctuations

Desmarchelier, David

The delayed effect of pollution on health: A source of endogenous fluctuations - 2017.


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Medical research points out that some diseases among the elderly can be explained by past exposure to air pollution ( PM2.5). In this paper, we address the dynamic consequences of this empirical evidence. For this purpose, we develop an environmental OLG model where the level of pollution faced by a representative consumer during their youth affects their health during old age. Within this simple framework, we show that a strong sensitivity of the health of the elderly to pollution exposure during youth may lead to the occurrence of a limit cycle near the steady state, through a Hopf bifurcation.

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