## Abstract

For an overlapping generations economy with varying life-cycle productivity, non-stationary endowments, continuous time starting at -∞ (hence allowing for full anticipation), constant-returns-to-scale production and ces utility, we fully characterise equilibria where output is higher than investment, which is strictly positive. Net assets (aggregate savings minus the value of the capital stock) are constant in any equilibrium, and, for balanced growth equilibria (bge, defined for an economy with stationary endowments), net assets are non-zero only in the golden rule equilibrium, in accord with Gale (1973). The number of bge is finite. Their parity, however, depends on the life-cycle productivity, in particular, on the relation between the intertemporal elasticity of substitution, the minimal working age and the minimal tax age.

Original language | English |
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Pages (from-to) | 537-595 |

Number of pages | 59 |

Journal | Economic Theory |

Volume | 54 |

Issue number | 3 |

DOIs | |

State | Published - Nov 2013 |

## Keywords

- Exogenous growth
- Infinite economies
- Overlapping generations

## ASJC Scopus subject areas

- Economics and Econometrics