REVIEW OF THE USE OF GENERAL EQUILIBRIUM MODELS WITH OVERLAPPING GENERATIONS AND UNCERTAINTY IN MACROECONOMIC RESEARCH

АНАЛИЗ ОПЫТА ИСПОЛЬЗОВАНИЯ МОДЕЛЕЙ ОБЩЕГО РАВНОВЕСИЯ С ПЕРЕКРЫВАЮЩИМИСЯ ПОКОЛЕНИЯМИ И НЕОПРЕДЕЛЕННОСТЬЮ В МАКРОЭКОНОМИЧЕСКИХ ИССЛЕДОВАНИЯХ

Maria Kazakova

State and Municipal Management Scholar Notes, 2019, vol. 2, 123-134

Abstract: General equilibrium models with overlapping generations is a traditional tool for the quantitative analysis of the effects of economic policies and demographic changes. In the first works devoted to general equilibrium models, altruistic relations linked generations of agents. Further, however, the presence of altruism in models lost its relevance. In 1979 A. Auerbach and L. Kotlikoff proposed multidimensional models with overlapping generations and rational expectations, which would later acquire tremendous practical significance as a tool for analyzing fiscal policy and demography issues. The first versions of such models suggested inelastic labor supply and a simple mechanism describing the dynamics of demography. The more flexible versions of the models took into account the elasticity of labor supply and demographic changes; the dependence of fertility and mortality on age and time and the uncertainty of the life period of agents; tradable and non-tradable products in different countries. Later authors included also such factors as land, income, uncertainty, political economy, liquidity, social security financing, and the economy’s relationship with climate. This article reviews the evolution of general economic equilibrium models from 1957 to the present. This review is of great value as a starting point for the perspective development of a model with overlapping generations and exhaustible energy sources (oil, gas and coal), which are the main emitters of greenhouse gases when used as an energy source in production. This model also takes into account the uncertainty due to the inaccuracy of the parameters of climate sensitivity to greenhouse gas emissions and economic activity to climate change.

Keywords: general equilibrium models; overlapping generations; uncertainty; altruism; rational expectations; demography; fiscal policy; pension system; climate change (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://repec.ranepa.ru/rnp/smmscn/s19218.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rnp:smmscn:s19218

Access Statistics for this article

State and Municipal Management Scholar Notes is currently edited by Tatiana Ignatova

More articles in State and Municipal Management Scholar Notes from Russian Presidential Academy of National Economy and Public Administration Contact information at EDIRC.
Bibliographic data for series maintained by RANEPA maintainer ().