Stability of Equilibria in the Overlapping Generations Model with Endogenous Labor Supply

Carine Nourry

G.R.E.Q.A.M. from Universite Aix-Marseille III

Abstract: This paper looks at the issue of existence and stability of steady state equilibria in an overlapping generations model with productive capital (a-la Diamond) augmented to include endogenous labour supply. The paper derives necessary and sufficient conditions under which a steady state equilbrium is stable. Furthermore, a key result of this paper appears to be this: if labor supply is increasing in the capital-labor ratio at some steady state equilibrium, then, the usual conditions required for stability of the nontrivial steady state in the standard Diamond model are enough to guarantee stability of that steady state in the Diamond model augmented by endogenous labour supply.

Keywords: LABOUR SUPPLY; ECONOMIC EQUILIBRIUM; GENERATIONS (search for similar items in EconPapers)
JEL-codes: C62 O41 (search for similar items in EconPapers)
Pages: 24 pages
Date: 1998
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Stability of equilibria in the overlapping generations model with endogenous labor supply (2001)
Working Paper: Stability of equilibria in the overlapping generations model with endogenous labor supply (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:aixmeq:98a01

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