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In the Overlapping Generations model, it’s stated that sustained growth is not possible in a absence of technical progress.

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By sustained growth means growth that can be sustained in the long-run. In standard OG model if there is no technological progress there can be only short-run “spur” of growth if people save more but it is not possible to actually have sustained growth in the long-run.

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  • $\begingroup$ Thanks! And what’s the equation that proves it? $\endgroup$ Commented Jul 2, 2022 at 11:05
  • $\begingroup$ @tryingtogetsmth That can be proven by solving the model. Solution to the growth path of standard OG model will be such that it depends on technology $\endgroup$
    – 1muflon1
    Commented Jul 2, 2022 at 11:15

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