Myopic and perfect foresight in the OLG model

Philippe Michel and David de la Croix

No 1999014, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: We compare the dynamics under myopic foresight and under perfect foresight in an overlapping generations model with capital accumulation and two-period lived individuals. When the rational dynamics are defined and the myopic dynamics are monotonic, the study of myopic foresight allows to characterize the dynamics under perfect foresight. The study of myopic dynamics also allows to obtain a condition of uniqueness of the steady state that bears only on the second order derivatives of the utility and production functions.

Keywords: perfect foresight; myopic foresight; stability (search for similar items in EconPapers)
JEL-codes: E32 O41 (search for similar items in EconPapers)
Pages: 7
Date: 1999-05-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Myopic and perfect foresight in the OLG model (2000)
Working Paper: Myopic and Perfect Foresight in the OLG Model (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:1999014

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