EconPapers    
Economics at your fingertips  
 

Target Saving in an Overlapping Generations Model

Brishti Guha () and Guha Ashok S ()
Additional contact information
Guha Ashok S: Indian Statistical Institute

The B.E. Journal of Macroeconomics, 2008, vol. 8, issue 1, 1-26

Abstract: We examine a model in which the utility function has been engineered so that it is optimal for consumers to aim for a fixed target level of retirement resources. In this case, consumption displays excess sensitivity to current income as well as perfect old age insurance. In an overlapping generations model, this leads naturally to multiple and unstable equilibria. Under static expectations, it also leads to a well-defined dynamics, including possible historical traps, implosions involving ever-diminishing capital stock and ever-increasing interest rates, and the feasibility of optimal one-time interventions.

Date: 2008
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.2202/1935-1690.1541 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: TARGET SAVING IN AN OVERLAPPING GENERATIONS MODEL (2008) Downloads
Working Paper: Target Saving In An Overlapping Generations Model (2008) Downloads
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:bpj:bejmac:v:8:y:2008:i:1:n:14

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/bejm

DOI: 10.2202/1935-1690.1541

Access Statistics for this article

The B.E. Journal of Macroeconomics is currently edited by Arpad Abraham and Tiago Cavalcanti

More articles in The B.E. Journal of Macroeconomics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2021-12-12
Handle: RePEc:bpj:bejmac:v:8:y:2008:i:1:n:14