Weak Scale Effects in Overlapping Generations Economy

Gilad Sorek and Bharat Diwakar

Economics Bulletin, 2017, vol. 37, issue 2, 962-969

Abstract: We show how the two alternative saving motives - life-cycle consumption smoothing and parental bequests - determine the relation between population growth and R&D-based economic growth, i.e. the sign of the weak scale effect. We take a textbook R&D-based growth model of inÂ…finitely lived agents with no life-cycle saving motive and re-analyze it in the Overlapping Generations (OLG) framework, which incorporates both life-cycle and bequest saving motives. We decompose the effect of each saving motive on the sign of the weak scale effect and show that in the presence of both saving motives it is ambiguous in general.

Keywords: R&D-based Growth; Weak Scale-Effects; Bequests; OLG (search for similar items in EconPapers)
JEL-codes: O3 O4 (search for similar items in EconPapers)
Date: 2017-05-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2017/Volume37/EB-17-V37-I2-P84.pdf (application/pdf)

Related works:
Working Paper: Weak Scale Effects in Overlapping Generations Economy (2016)
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:ebl:ecbull:eb-17-00036

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().