Abstract
The main result is that the golden rule equilibrium (GRE) is Pareto optimal (in the classical sense) in an overlapping generations (OG) model with constant-returns-to-scale production, transfers, arbitrary life-time productivity and homogeneous instantaneous felicity. In addition, we extend Cass and Yaari's equivalence between efficiency (aggregate consumption dominance) and present value dominance (with evaluation made using a candidate equilibrium price path).
| Original language | English |
|---|---|
| Pages (from-to) | 1780-1799 |
| Number of pages | 20 |
| Journal | Macroeconomic Dynamics |
| Volume | 19 |
| Issue number | 8 |
| DOIs | |
| State | Published - 30 Apr 2014 |
Bibliographical note
Publisher Copyright:© Cambridge University Press 2015.
Keywords
- Exogenous Growth
- Golden Rule Equilibrium
- Infinite Economies
- Overlapping Generations
ASJC Scopus subject areas
- Economics and Econometrics
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