On the Golden Rule of capital accumulation under endogenous longevity

David de la Croix

No 2008032, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques

Abstract: This note derives the Golden Rule of capital accumulation in a Chakraborty-type economy, i.e. a two-period OLG economy where longevity is endogenous. It is shown that the capital per worker maximizing steady-state consumption per head is inferior to the Golden Rule capital level prevailing under exogenous longevity. We characterize also the lifetime Golden Rule, that is, the capital per worker maximizing steady-state expected lifetime consumption per head, and show that this tends to exceed the standard Golden Rule capital level.

Keywords: Golden Rule; longevity; OLG models (search for similar items in EconPapers)
JEL-codes: E13 E21 E22 I12 (search for similar items in EconPapers)
Date: 2008-12-01
New Economics Papers: this item is included in nep-cba, nep-dge, nep-hea and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: On the Golden Rule of capital accumulation under endogenous longevity (2010)
Working Paper: On the Golden Rule of capital accumulation under endogenous longevity (2010)
Working Paper: On the Golden Rule of capital accumulation under endogenous longevity (2010)
Working Paper: On the Golden Rule of capital accumulation under endogenous longevity (2008)
Working Paper: On the Golden Rule of capital accumulation under endogenous longevity (2008)
Working Paper: On the Golden Rule of capital accumulation under endogenous longevity (2008)
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