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, 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.
Keywords: target saving; history; excess sensitivity; static expectations; rational expectations; uniqueness (search for similar items in EconPapers)
Date: 2008
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)
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) 
Working Paper: Target Saving In An Overlapping Generations Model (2008) 
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/journal/key/bejm/html
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 ().