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

• Type: Article in International Scientific Journal
• Date: 2013

Authors

Mertens, JF (Author) Other; Rubinchik, A (Author) Other

Journal

Title: Economic Theory

Vol. 54

Pages: 537-595

ISSN: 0938-2259

Publisher: Springer Nature

Indexing

ISI Web of Knowledge - 7 Citations

Scopus - 7 Citations

Other information

Authenticus ID: P-017-3S7

DOI: 10.1007/s00199-012-0725-z

Abstract (EN): For an overlapping generations economy with varying life-cycle productivity, non-stationary endowments, continuous time starting at -¿ (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. © 2012 Springer-Verlag Berlin Heidelberg.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 59