Questions tagged [representative-agent]
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5
questions
0
votes
1answer
24 views
DSGE model with agents that develop their skills
Are there DSGE models with agents with different skill levels (and according wage differences) who can develop or lose their skills and with employees with dynamic/changing skill levels and skill ...
3
votes
1answer
962 views
Euler's Theorem
Can anyone give me connection and intuition behind each of the following euler's equation-
Euler's equation in production function represents that total factor payment equals degree of homogeneity ...
1
vote
1answer
212 views
Perpetual Youth Model
I am reading the famous paper of Blanchard,1985. There are some fundamental stuff that I did not really get.
1) Why they call it "perpetual youth"?
2) On page 225, he mentions the cohort size. So, ...
3
votes
1answer
92 views
Use Lag Operator to find Lifetime Budget Constraint
The budget constraint is
$c_t + \tau_t + s_{t+1} =w_t(1-l_t) +(1+r_t)s_t$
And assume
$\underset{t \longrightarrow \infty}{lim} \ \displaystyle{\frac{s_t}{\Pi_{i=1}^{t-1} (1+r_i)}} = 0$
Lag ...
5
votes
1answer
133 views
How, with complete markets, do we have a representative agent?
I've read several texts stating that with a complete market assumption, there's always a representative agent lurking. How is it that by assuming complete markets, we're able to prove the existence of ...
