Overlapping-Generations Model of Economic Growth

2018 ◽  
pp. 15-57
Author(s):  
Sibabrata Das ◽  
Alex Mourmouras ◽  
Peter Rangazas
Keyword(s):  
Economic Growth ◽  
Overlapping Generations ◽  
Overlapping Generations Model

EXPECTATIONS, FORECASTING, AND PERFECT FORESIGHT

1999 ◽  
Vol 3 (2) ◽  
pp. 167-186 ◽  
Author(s):  
Volker Böhm ◽  
Jan Wenzelburger
Keyword(s):  
Economic Growth ◽  
Overlapping Generations ◽  
Sufficient Conditions ◽  
General Linear Model ◽  
Overlapping Generations Model ◽  
Savings Behavior ◽  
Perfect Foresight ◽  
Expectations Formation ◽  
Necessary And Sufficient ◽  
Dominant Influence

The paper studies the nature of expectations formation rules for deterministic economic laws with an expectations feedback within the framework of dynamical systems theory. In such systems, the expectations formation rules, called predictors, have a dominant influence. The concept of a perfect predictor, which generates perfect-foresight orbits, is proposed and analyzed. Necessary and sufficient conditions are given for which local as well as global perfect foresight is possible. The concept is illustrated for the general linear model as well as for models of the cobweb type. For the standard overlapping generations model of economic growth, the existence of perfect predictions depends strongly on the savings behavior of the agents and on the technology.

scholarly journals Sustainable development in an aging economy

2002 ◽  
Vol 7 (1) ◽  
pp. 9-22 ◽  
Author(s):  
Tetsuo Ono ◽  
Yasuo Maeda
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Environmental Policy ◽  
Overlapping Generations ◽  
Population Aging ◽  
Overlapping Generations Model

In this paper, we analyze the effects of population aging on economic growth and the environment in a two-period overlapping generations model of growth, aging, and the environment. We show that aging may be beneficial to economic growth and the environment under perfect annuitisation, while possibly harmful under imperfect annuitisation. We also discuss the implications of our results for environmental policy in an aging economy.

Capital Income Taxation, Economic Growth and Heterogeneity in the Motivation to Give

2012 ◽  
Vol 13 (3) ◽  
pp. 291-306
Author(s):  
Lars Kunze
Keyword(s):  
Economic Growth ◽  
Income Tax ◽  
Overlapping Generations ◽  
Income Taxation ◽  
Capital Income ◽  
Capital Income Taxation ◽  
Overlapping Generations Model ◽  
Tax Rate ◽  
Motivation To Give ◽  
The Relationship

Abstract This study provides a comprehensive analysis of the relationship between capital income taxation and economic growth within an overlapping generations model when individuals may bequeath wealth. The altruistic concern is modeled as a synthesis of joy-of-giving and family altruism so that individuals may derive utility from the amount of bequest itself and by providing children with a disposable income later on in life. Using this framework, it is shown that, in contrast to the existing literature, increasing the capital income tax rate may well enhance growth under operative bequests.

scholarly journals Education financing and growth using an overlapping generations model: A theoretical perspective

2013 ◽  
Vol 58 (197) ◽  
pp. 7-21
Author(s):  
Zambaa Ayed ◽  
Hassen Ben
Keyword(s):  
Economic Growth ◽  
Public Education ◽  
Overlapping Generations ◽  
Theoretical Perspective ◽  
Overlapping Generations Model ◽  
Public And Private ◽  
Education Financing ◽  
Private Expenditure ◽  
Educational Financing

This paper proposes an overlapping generations model along the lines of the papers by Glomm and Ravikumar (1997). Its aim is to provide a theoretical extension in which we establish, in an original framework, a comparison of public and private educational financing systems in terms of economic growth. The results provide a critique of the literature that suggests that private expenditure will inevitably lead to greater economic growth than a policy of public education.

scholarly journals Complementary funded pensions and economic growth: Theoretical and empirical evidence using an overlapping generations model applied to the case of Tunisia

2021 ◽  
Vol 66 (231) ◽  
pp. 59-97
Author(s):  
Houyem Chekki Cherni
Keyword(s):  
Economic Growth ◽  
Computable General Equilibrium ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Pension Reform ◽  
Computable General Equilibrium Model ◽  
Pension Scheme ◽  
Overlapping Generations Model ◽  
Funded Pensions ◽  
Theoretical Results

This paper presents a prospective analysis to guide effective pension reform. Using an overlapping generations model with differing returns on free savings and compulsory returns on funded pensions, we put into perspective the results largely supported in the economic literature that assume that replacing a pay-as-you-go pension scheme by funded plans boosts economic growth. We show that this reform is not necessarily synonymous with economic growth due to a crowding-out effect. Our contribution is not limited to theoretical results: we also assess the impacts empirically. Thus, we extend the theoretical model to take into account several periods and 55 generations. Simulation results, using a dynamic overlapping generations computable general equilibrium model calibrated for the Tunisian case, indicate that whether pension reform promotes capital accumulation and economic growth depends on the rate of return on funded pension savings relative to free savings.

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