# Questions tagged [olg]

With reference to overlapping generation models (OLG models).

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### Necessary conditions in overlapping generations model (OLG)

The consumer at each period maximizes $$\displaystyle\sum_{i=1}^{I}\beta^{i-1}U(c^i_{t+i},l^i_{t+i}) , t=0,1,2,3,...$$ subject to (1+\eta_t)c^{i}_t+...
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### State variable or jump variable

In my OLG model, I have two law of motions for capital and pollution \begin{align*} &K_{t+1} = s_t\\ &P_{t+1} = (1-\delta)P_t+\rho K_t \end{align*} where $K$ is capital, $s$ is the saving from ...
• 33
1 vote
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### Can anyone help me derive saving from the OLG model? (Just check to see if my start is okay please)

Question assumptions: Consider the effect of a capital tax on the OLG model. The government imposes a capital tax rate at the rate $\tau\in[0,1)$ and pays all the tax revenues back to the old in a ...
• 87
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### Capital accumulation equation in steady-state (OLG model)

So I was given a question to derive the equation for aggregate capital accumulation. $K_{t+1}$, and explain if the economy has a stationary steady-state with zero growth. The model is as follows, ...
1 vote
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### Are overlapping generation (OLG) models extensions of a DSGE model?

Are overlapping generation models (OLG) extensions of a dynamic stochastic general equilibrium (DSGE) model? Or aren't these DSGE per se?
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### What is the true source of dynamic(Pareto) inefficiency in OLG models?

This question confuses me for some time. My first impression is that Pareto sub-optimality is due to feature that old generations will consume everything without any incentive to trade. But after ...
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