Biblioteca Digital de VanguardiaAlternative Dynamics and Stability Results in a Standard OLG Model: An Interpretation
In this paper we make a critique of the standard stability results already established in a basic two period OLG model. Under an alternative interpretation (competitive financial markets), we are able to select the test equilibrium in the long run, in such a way that the economy can reach the Golden...
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| Formato: | artículo científico |
| Lenguaje: | Inglés |
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Centro de Investigación y Docencia Económicas, A.C.
2004
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| Acceso en línea: | http://www.redalyc.org/articulo.oa?id=32313203 http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/82846 |
| _version_ | 1782339009958117376 |
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| author | César L. Guerrero Luchtenberg |
| author_facet | César L. Guerrero Luchtenberg |
| author_sort | César L. Guerrero Luchtenberg |
| collection | Repositorio |
| description | In this paper we make a critique of the standard stability results already established in a basic two period OLG model. Under an alternative interpretation (competitive financial markets), we are able to select the test equilibrium in the long run, in such a way that the economy can reach the Golden Rule Steady State, even when at this interest rate, all young agents are creditors. We show that even if the economy starts with only young people referred to as the Garden of Eden Economy , it also reaches the Golden Rule Steady State. Additionally, as a by-product of this study, we obtain a complete characterization of the possible equilibria. |
| format | artículo científico |
| id | clacso-CLACSO82846 |
| institution | CLACSO, Repositorio Digital |
| language | Inglés |
| publishDate | 2004 |
| publisher | Centro de Investigación y Docencia Económicas, A.C. |
| record_format | greenstone |
| spelling | clacso-CLACSO828462022-03-22T16:07:33Z Alternative Dynamics and Stability Results in a Standard OLG Model: An Interpretation César L. Guerrero Luchtenberg Economía y Finanzas OLG models selection of equilibria Golden Rule Steady State Samuelson Case Garden of Eden Economy In this paper we make a critique of the standard stability results already established in a basic two period OLG model. Under an alternative interpretation (competitive financial markets), we are able to select the test equilibrium in the long run, in such a way that the economy can reach the Golden Rule Steady State, even when at this interest rate, all young agents are creditors. We show that even if the economy starts with only young people referred to as the Garden of Eden Economy , it also reaches the Golden Rule Steady State. Additionally, as a by-product of this study, we obtain a complete characterization of the possible equilibria. 2004 2022-03-22T16:07:33Z 2022-03-22T16:07:33Z artículo científico http://www.redalyc.org/articulo.oa?id=32313203 http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/82846 en http://www.redalyc.org/revista.oa?id=323 Economía Mexicana. Nueva Época application/pdf Centro de Investigación y Docencia Económicas, A.C. Economía Mexicana. Nueva Época (México) Num.2 Vol.XIII |
| spellingShingle | Economía y Finanzas OLG models selection of equilibria Golden Rule Steady State Samuelson Case Garden of Eden Economy César L. Guerrero Luchtenberg Alternative Dynamics and Stability Results in a Standard OLG Model: An Interpretation |
| title | Alternative Dynamics and Stability Results in a Standard OLG Model: An Interpretation |
| title_full | Alternative Dynamics and Stability Results in a Standard OLG Model: An Interpretation |
| title_fullStr | Alternative Dynamics and Stability Results in a Standard OLG Model: An Interpretation |
| title_full_unstemmed | Alternative Dynamics and Stability Results in a Standard OLG Model: An Interpretation |
| title_short | Alternative Dynamics and Stability Results in a Standard OLG Model: An Interpretation |
| title_sort | alternative dynamics and stability results in a standard olg model: an interpretation |
| topic | Economía y Finanzas OLG models selection of equilibria Golden Rule Steady State Samuelson Case Garden of Eden Economy |
| url | http://www.redalyc.org/articulo.oa?id=32313203 http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/82846 |