Equilibria in an overlapping generations model with transfer policies and exogenous growth

Jean-François Mertens and Anna Rubinchik ()

No WP2012/5, Working Papers from University of Haifa, Department of Economics

Abstract: For an overlapping generations economy with varying life-cycle productivity, non-stationary endowments, continuous time starting at infinity (hence allowing for full anticipation), constant-returns-to-scale production and ces utility we fully characterise equilibria where output is higher than investment, which is strictly positive. Net assets (aggregate savings minus the value of the capital stock) are constant in any equilibrium, and, for balanced growth equilibria (BGE, defined for an economy with stationary endowments), net assets are non-zero only in the golden rule equilibrium, in accord with Gale 1973. The number of BGE is finite. Their parity, however, depends on the life-cycle productivity, in particular, on the relation between the intertemporal elasticity of substitution, the minimal working age and the minimal tax age.

Keywords: Infinite Economies; Overlapping Generations; Exogenous Growth (search for similar items in EconPapers)
JEL-codes: D50 (search for similar items in EconPapers)
Pages: 45
New Economics Papers: this item is included in nep-age and nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Equilibria in an overlapping generations model with transfer policies and exogenous growth (2013)
Working Paper: Equilibria in an overlapping generations model with transfer policies and exogenous growth (2012)
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