The Overlapping Generations Framework

Chapter 8 concludes the text with methodical remarks. It defends key assumptions made in the main text and compares them, to the extent they deviate, with more conventional premises. The chapter starts with a comparison of adaptive versus rational expectations. Thereafter, it contrasts infinite planning horizons, finite planning horizons, and overlapping generations models. The third section, which is devoted to modeling money, discusses money-in-the-utility, the transaction costs approach, and more recent theories that derive money demand from a microeconomic framework. The forth section shows that assuming a highly elastic labor supply is empirically unconvincing, whereas a constant labor supply simplifies the model greatly and appears as a reasonable approximation. The final section contrasts behavioral and choice theoretic approaches to price setting.

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INCOME INEQUALITY, MOBILITY, AND THE WELFARE STATE: A POLITICAL ECONOMY MODEL

Macroeconomic Dynamics ◽

10.1017/s1365100512000028 ◽

2012 ◽

Vol 17 (6) ◽

pp. 1198-1226 ◽

Cited By ~ 5

Author(s):

Luca Bossi ◽

Gulcin Gumus

Keyword(s):

Income Inequality ◽

Welfare State ◽

Social Insurance ◽

Overlapping Generations ◽

Tax Rates ◽

Overlapping Generations Model ◽

Public Programs ◽

Transfer Payments ◽

Set Up ◽

The Welfare State

In this paper, we set up a three-period stochastic overlapping-generations model to analyze the implications of income inequality and mobility for demand for redistribution and social insurance. We model the size of two different public programs under the welfare state. We investigate bidimensional voting on the tax rates that determine the allocation of government revenues among transfer payments and old-age pensions. We show that the coalitions formed, the resulting political equilibria, and the demand for redistribution crucially depend on the level of income inequality and mobility.

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Overlapping generations games with growing payoffs

Economics Letters ◽

10.1016/j.econlet.2021.110005 ◽

2021 ◽

pp. 110005

Author(s):

Chihiro Morooka

Keyword(s):

Overlapping Generations

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Prediction of Genetic Contributions and Generation Intervals in Populations With Overlapping Generations Under Selection

Genetics ◽

10.1093/genetics/151.3.1197 ◽

1999 ◽

Vol 151 (3) ◽

pp. 1197-1210 ◽

Cited By ~ 3

Author(s):

Piter Bijma ◽

John A Woolliams

Keyword(s):

Gene Flow ◽

Overlapping Generations ◽

Selective Advantage ◽

Turnover Time ◽

Breeding Value ◽

Age Classes ◽

Generation Interval ◽

Young Parents ◽

Genetic Contributions

Abstract A method to predict long-term genetic contributions of ancestors to future generations is studied in detail for a population with overlapping generations under mass or sib index selection. An existing method provides insight into the mechanisms determining the flow of genes through selected populations, and takes account of selection by modeling the long-term genetic contribution as a linear regression on breeding value. Total genetic contributions of age classes are modeled using a modified gene flow approach and long-term predictions are obtained assuming equilibrium genetic parameters. Generation interval was defined as the time in which genetic contributions sum to unity, which is equal to the turnover time of genes. Accurate predictions of long-term genetic contributions of individual animals, as well as total contributions of age classes were obtained. Due to selection, offspring of young parents had an above-average breeding value. Long-term genetic contributions of youngest age classes were therefore higher than expected from the age class distribution of parents, and generation interval was shorter than the average age of parents at birth of their offspring. Due to an increased selective advantage of offspring of young parents, generation interval decreased with increasing heritability and selection intensity. The method was compared to conventional gene flow and showed more accurate predictions of long-term genetic contributions.

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Predicting Rates of Inbreeding in Populations Undergoing Selection

Genetics ◽

10.1093/genetics/154.4.1851 ◽

2000 ◽

Vol 154 (4) ◽

pp. 1851-1864 ◽

Cited By ~ 5

Author(s):

John A Woolliams ◽

Piter Bijma

Keyword(s):

Overlapping Generations ◽

Linear Models ◽

Selection Process ◽

Correction Term ◽

Random Mating ◽

Nonrandom Mating ◽

Selection Processes ◽

Genetic Contributions ◽

The Relationship

AbstractTractable forms of predicting rates of inbreeding (ΔF) in selected populations with general indices, nonrandom mating, and overlapping generations were developed, with the principal results assuming a period of equilibrium in the selection process. An existing theorem concerning the relationship between squared long-term genetic contributions and rates of inbreeding was extended to nonrandom mating and to overlapping generations. ΔF was shown to be ~¼(1 − ω) times the expected sum of squared lifetime contributions, where ω is the deviation from Hardy-Weinberg proportions. This relationship cannot be used for prediction since it is based upon observed quantities. Therefore, the relationship was further developed to express ΔF in terms of expected long-term contributions that are conditional on a set of selective advantages that relate the selection processes in two consecutive generations and are predictable quantities. With random mating, if selected family sizes are assumed to be independent Poisson variables then the expected long-term contribution could be substituted for the observed, providing ¼ (since ω = 0) was increased to ½. Established theory was used to provide a correction term to account for deviations from the Poisson assumptions. The equations were successfully applied, using simple linear models, to the problem of predicting ΔF with sib indices in discrete generations since previously published solutions had proved complex.

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