On the Golden Rule of capital accumulation under endogenous longevity
David de la Croix and
Gregory Ponthiere
No 2008049, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)
Abstract:
This note derives the Golden Rule of capital accumulation in a Chakraborty-type economy, i.e. a two-period OLG economy where longevity is endogenous. It is shown that the capital per worker maximizing steady-state consumption per head is inferior to the Golden Rule capital level prevailing under exogenous longevity. We characterize also the Lifetime Golden Rule, that is, the capital per worker maximizing steady-state expected lifetime consumption per head, and show that this tends to exceed the standard Golden Rule capital level.
Keywords: Golden Rule; longevity; OLG models. (search for similar items in EconPapers)
JEL-codes: E13 E21 E22 I12 (search for similar items in EconPapers)
Date: 2008-08-01
References: Add references at CitEc
Citations: View citations in EconPapers (10)
Downloads: (external link)
https://sites.uclouvain.be/core/publications/coredp/coredp2008.html (application/pdf)
Related works:
Journal Article: On the Golden Rule of capital accumulation under endogenous longevity (2010) 
Working Paper: On the Golden Rule of capital accumulation under endogenous longevity (2010)
Working Paper: On the Golden Rule of capital accumulation under endogenous longevity (2010)
Working Paper: On the Golden Rule of capital accumulation under endogenous longevity (2008) 
Working Paper: On the Golden Rule of capital accumulation under endogenous longevity (2008) 
Working Paper: On the Golden Rule of capital accumulation under endogenous longevity (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:cor:louvco:2008049
Access Statistics for this paper
More papers in LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Alain GILLIS ().