Download or read book On Overlapping Generations Models with Productive Capital written by Günther Lang and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 109 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book was born out of a five-years research at Sonderforschungsbe reich 303 by the Deutsche Forschungsgemeinschaft (DFG) at Rheinische Friedrich-Wilhelms-Universitiit Bonn and was approved as my doctoral thesis by the Rechts-und Staatswissenschaftliche Fakultiit in December 1994. It was my former colleague Wolfgang Peters who had drawn my atten tion to overlapping-generations models and to problems of intergenerational efficiency and distribution. The subtle connection between the latter two has been fascinating me from the very beginning: redistribution of the results of free trade can become necessary from the point of view of efficiency, although no externalities hamper the development of an economy. In spite of being a matured part of economics, neoclassical growth theory had left many questions unsolved, some of them even unrecognized by a large part of our profession. I took up the challenge to contribute to the investigation of some of these thorny problems. One of these issues is the often quoted idea of the inter generational con tract. Although intergenerational transfers can improve intertemporal effi ciency, the design of pension schemes to achieve an improvement of well-being of some generations without hurting that of any other, is not an easy task in an economy with flexible prices. Quite frequently, only interest rate and growth rate are taken into account when deciding on whether a generation wins or looses.

Download or read book Monetary Equilibrium in an Overlapping Generations Model with Productive Capital written by Amitava Bose and published by . This book was released on 1992 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Monetary Equilibrium in an Overlapping Generations Model with Productive Capital written by Amitava Bose and published by . This book was released on 1990 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A Theory of Economic Growth written by David de la Croix and published by Cambridge University Press. This book was released on 2002-10-24 with total page 400 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides an in-depth treatment of the overlapping generations model in economics incorporating production.

Download or read book Dynamic Inefficiency in an Overlapping Generations Economy with Production written by Guido Cazzavillan and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Reichlin (JET, 1986) has shown in an OLG model with productive capital that whenever the steady state is locally indeterminate and undergoes a Hopf bifurcation, it is Pareto-optimal. While these results were established under the assumption of Leontief technology, the author has partially extended them to show that the Hopf bifurcation is robust with respect to the introduction of capitallabor substitution. In this note, we prove that the Pareto-optimality of the steady state does not extend to technologies with capital-labor substitution. When the steady state is a sink or undergoes a Hopf bifurcation, it is characterized by over-accumulation with respect to the Golden Rule - the interest rate is negative - hence not Pareto-optimal. Most importantly, it follows that stabilization policies targeting the steady state leave room for welfare losses associated with productive inefficiency, apart from the very special case of Leontief technology.

Download or read book On a Simple Model of Overlapping Generations with Human Capital written by Hiroyuki Hashimoto and published by . This book was released on 2001* with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a simple model with overlapping-generations where finite-lived individuals accumulate human capital not taking the by-productive effect on future generations into account. In such model, the phenomenon of indeterminacy of equilibrium appears. Such indeterminancy does not occur in similar model presented in Hashimoto (1998). The substantial difference between the two models is whether or not individuals' behavior is altruistic. Non-altruism of individuals in overlapping-generations economy implies the lack of boundary condition in appropriate set of optimal conditions. Since it is well known that appropriately defined boundary-value problems have unique solutions, a shortage of boundary conditions implies indetermancy of equilibrium. From this viewpoint we may say that the source of indeterminacy is finite lifetimes of non-altruistic individuals.

Download or read book Human Capital and Economic Growth in an Overlapping Generations Model written by Binh Tran-Nam and published by . This book was released on 1995 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Growth and International Trade written by Karl Farmer and published by Springer Nature. This book was released on 2021-04-01 with total page 596 pages. Available in PDF, EPUB and Kindle. Book excerpt: Revised and updated for the 2nd edition, this textbook guides the reader towards various aspects of growth and international trade in a Diamond-type overlapping generations framework. Using the same model type throughout the book, timely topics such as growth with bubbles, robots and involuntary unemployment, financial integration and house price dynamics, policies to mitigate climate change and the persistence of religion in a globalized market economy are explored. The first part starts from the “old” growth theory and bridges to the “new” growth theory (including R&D and human capital approaches). The second part presents an intertemporal equilibrium theory of inter- and intra-sectoral trade, investigates innovation, growth and trade and limits to public debt as well as nationally and internationally optimal climate policies. The debt dynamics of the Euro Zone and the origins of intra-EMU and Asian-US trade imbalances are also explored. The book is primarily addressed to upper undergraduate and graduate students wishing to proceed to the analytically more demanding journal literature.

Download or read book Business Cycle Phenomena in Overlapping Generations Economies with Stochastic Production written by Jens-Ulrich Peter and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes economic fluctuations in an overlapping generations economy with productive capital in which random shocks in aggregate productivity are present. Under specific assumptions we obtain an explicit solution of the model. Applying random dynamical systems theory, we can prove that the long-run behavior of the economy is uniquely described by an asymptotically stable random fixed point. The statistical properties of the aggregates output, consumption, capital stock, and real wage are investigated numerically. We find that our artificial economy displays several real world business cycle phenomena.

Download or read book International Trade and Capital Accumulation in an Overlapping Generations Model with a Public Intermediate Good written by Tsuyoshi Shinozaki and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the effects of a public intermediate good on trade patterns, capital accumulation, and the gains from trade in a two-country, three-sector overlapping generations model. A public intermediate good affects not only the productivity of private production but capital accumulation; thus, the results differ from those obtained in previous studies. First, opening to trade may accelerate capital accumulation in the higher-savings country. Additionally, the country producing a public intermediate good more (which is labor-intensive) may be the importer of the investment good (which is the most capital-intensive). Finally, the lower-savings country may have lower steady-state welfare under trade.

Download or read book Intergenerational and International Trade written by Rudiger Dornbusch and published by . This book was released on 1981 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Environmental Externality and Capital Accumulation in an Overlapping Generations Model with Heterogeneous Preference written by and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We study an overlapping generations model á la Diamond in which two types of agents are alive at the same time. One type of agents cares about its own level of consumption and an idex of environmental quality, while the other type of agents carse only about its own consumption. At any period, the environmental quality is negatively affected by the saving decision of the previous generation, and this creates an intergenerational externality over time. Young agents that care about environmental quality can invest in productive capital and/or in environmental preservation, while the other agents can invest only in productive capital. We show that in such a framework, capital and environmental quality accumulation over time depend crucially on the characteristics of the technology. Furthermore, we derive a general condition for the local stability of a steady state implying an high level of capital and a high level of environmental quality. This stability condition depends on the relative effects of the capital and environmental quality on the saving functions of the individuals. Finally, we show that "saddle-node" bifurcations may arise in our model. -- overlapping generations ; environmental externality

Download or read book Mathematical Topics in Economic Theory and Computation written by Richard Hollis Day and published by Siam. This book was released on 1972 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Market Power in Two Period Lived OLG Models with Rational Expectations written by Paul Ritschel and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article demonstrates that in the standard two-period lived overlapping-generations model with rational expectations, price-taking behavior of agents on the capital market is implausible. We show that market power reduces agents' savings relative to the price-taker benchmark such that less funds are channeled into the productive sector. Market power thus has a detrimental effect on long-run economic growth. The qualitative dynamics of the model is unaffected, as it is always monotonic. Market power leads to an inefficiency because the golden-rule allocation can no longer be achieved.

Download or read book Handbook of Computable General Equilibrium Modeling written by Peter B. Dixon and published by Newnes. This book was released on 2013-11-14 with total page 1143 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this collection of 17 articles, top scholars synthesize and analyze scholarship on this widely used tool of policy analysis, setting forth its accomplishments, difficulties, and means of implementation. Though CGE modeling does not play a prominent role in top US graduate schools, it is employed universally in the development of economic policy. This collection is particularly important because it presents a history of modeling applications and examines competing points of view. Presents coherent summaries of CGE theories that inform major model types Covers the construction of CGE databases, model solving, and computer-assisted interpretation of results Shows how CGE modeling has made a contribution to economic policy

Download or read book Global Analysis of an Overlapping Generations Economy with Land written by Andrew Mountford and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the global dynamics of a convex overlapping generations model with land. It derives a competitive equilibrium such that for every given initial level of capital per capita, the economy has a unique perfect-foresight equilibrium. It shows that the existence and uniqueness of this perfect-foresight equilibrium is robust to the presence of multiple steady-state levels of capital per capita. Furthermore, it shows that this model can provide an interesting insight into the economics of land taxation. Specifically, it shows that changes in the rate of land taxation may cause a bifurcation in the model s dynamical system and so may allow an economy with a low initial capital stock to break out of a poverty trap steady-state equilibrium.

Download or read book On the Interplay Between Speculative Bubbles and Productive Investment written by Xavier Raurich and published by . This book was released on 2016 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: The aim of this paper is to study the interplay between long term productive investments and more short term and liquid speculative ones. A three-period lived overlapping generations model allows us to make this distinction. Agents have two investment decisions. When young, they can invest in productive capital that provides a return during the following two periods. When young or in the middle age, they can also invest in a bubble. Assuming, in accordance with the empirical evidence, that the bubbleless economy is dynamically efficient, the existence of a stationary bubble raises productive investment and production. Indeed, young agents sell short the bubble to increase productive investments, whereas traders at middle age transfer wealth to the old age. We outline that a technological change inducing either a larger return of capital in the short term or a similar increase in the return of capital in both periods raises productive capital, production and the bubble size. This framework also allows us to discuss several economic applications: the effects of both regulation on limited borrowing and fiscal policy on the occurrence of bubbles, the introduction of a probability of market crash and the effect of bubbles on income inequality.