Productivity and welfare in an overlapping generations model with housing

George Waters

Economics Letters, 2020, vol. 194, issue C

Abstract: Productivity and welfare can have an inverse relationship. This paper describes an overlapping generations model where housing is the savings vehicle, and utility is provided by housing and a consumption good. If intratemporal substitution between the consumption good and housing is sufficiently inelastic, aggregate utility is decreasing in productivity. At higher levels of productivity, the relative scarcity of housing aggravates the problem of oversaving.

Keywords: Housing; Income distribution; OLG; Savings (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:194:y:2020:i:c:s0165176520302378

DOI: 10.1016/j.econlet.2020.109375

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