Format:
1 online resource (398 pages)
Edition:
1st ed.
ISBN:
9780521806428
,
9780511148378
Content:
This book provides an in-depth treatment of the overlapping generations model in economics incorporating production. Methodological emphasis is put on using general preferences and technologies, on the global study of dynamic aspects of the model, and on furnishing adequate tools to analyze policies involving inter-generational transfers
Note:
Cover -- Half-title -- Series-title -- Tilte -- Copyright -- Dedication -- Contents -- Introduction -- OVERLAPPING GENERATIONS AND MACRO-ECONOMICS -- OVERLAPPING GENERATIONS IN OTHER FIELDS -- OUTLINE OF THE BOOK -- Acknowledgments -- ONE Competitive Equilibria -- 1.1 THE MODEL -- 1.1.1 Two-period-lived Individuals -- 1.1.2 Neo-classical Technology -- 1.1.3 Firms -- 1.2 MAIN ASSUMPITIONS -- 1.2.1 The Assumptions on the Utility Function -- 1.2.2 The Assumptions on the Production Function -- 1.3 THE BEHAVIOR OF THE AGENTS AT PERIOD t -- 1.3.1 The Young Individuals -- 1.3.2 The Inter-temporal Elasticity of Substitution -- 1.3.3 The Properties of the Savings Function -- 1.3.4 The Old Individuals -- 1.3.5 The Firms -- 1.4 THE TEMPORARY EQUILIBRIUM -- 1.5 THE INTER-TEMPORAL EQUILIBRIUM WITH PERFECT FORESIGHT -- 1.5.1 Existence of Equilibria -- 1.5.2 Uniqueness of the Inter-temporal Equilibrium -- 1.6 CAPITAL DYAMICS AT A RATIONAL INTER-TEMPORAL EQUILIBRIUM -- 1.6.1 Steady States and Stability -- 1.6.2 Dynamics -- 1.6.3 The Behavior Near 0 -- 1.6.4 A Quick Look at the Empirics of Growth -- 1.7 COMPARISON OF MYOPIC AND PERFECT FORESIGHT -- 1.7.1 The Steady States -- 1.7.2 Local Stability -- 1.7.3 Uniqueness of the Steady State -- 1.8 APPLICATIONS AND EXTENSIONS -- 1.8.1 Myopic and Perfect Foresight in an Example -- 1.8.2 A Demographic Shock -- 1.8.3 Non-separable Utility Function -- 1.8.4 Homothetic Preferences -- 1.8.5 Heterogeneous Agents -- 1.8.6 Technical Progress -- 1.8.7 Imperfect Credit Market -- 1.8.8 Three-period-lived Households -- 1.8.9 Borrowing Constraints in the Three-period Model -- 1.9 CONCLUSION -- TWO Optimality -- 2.1 OPTIMALITY OF STATIONARY PATHS -- 2.1.1 Feasible Long-run Capital Stock -- 2.1.2 The Optimal Stationary Path: The Golden Age -- 2.1.3 Under-and Over-accumulation of Capital -- 2.2 OPTIMALITY OF THE DYNAMICS
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2.2.1 Dynamic Efficiency -- 2.2.2 Pareto Optimality of Dynamics -- 2.3 THE PLANNING PROBLEM -- 2.3.1 The Objective Function -- 2.3.2 Properties of the Value Function -- 2.3.3 Existence and Monotonicity of Optimal Paths -- 2.3.4 Limit of the Optimal Path and Optimal Steady State -- 2.4 MARGINAL ANALYSIS OF OPTIMAL SOLUTIONS -- 2.4.1 The Optimality Conditions -- 2.4.2 The Planner's Stationary Solution -- 2.4.3 Local Dynamics -- 2.4.4 A Graphical Exposition -- 2.5 UNBOUNDED OPTIMAL GROWTH -- 2.5.1 Existence of Optimal Paths When sigma andgt -- 1 -- 2.5.2 Existence of Optimal Paths When sigma andlt -- 1 (and y... -- 2.5.3 Existence of Optimal Paths When sigma = 1 -- 2.5.4 General Result -- 2.5.5 The Long-run Growth Rate -- 2.6 APPLICATIONS AND EXTENSIONS -- 2.6.1 Properties of the Policy Functions When f (0) andgt -- 0 -- 2.6.2 Application: The Optimal Speed of Convergence -- 2.6.3 Application: Rise in Beta -- 2.6.4 A Mixed CES-Linear Production Function -- 2.6.5 Optimal Growth in the Ak Model -- 2.7 CONCLUSION -- THREE Policy -- 3.1 LUMP-SUM TRANSFERS AND THE SECOND WELFARE THEOREM -- 3.1.1 Equilibrium with Lump-sum Transfers -- 3.1.2 The Second Welfare Theorem -- 3.1.3 The Direction of Optimal Transfers in the Long Run -- 3.1.4 Reversal of Optimal Transfers Over Time: An Example -- 3.2 PENSIONS -- 3.2.1 Fully Funded System -- 3.2.2 Pay-as-you-go System: Existence of Equilibrium -- 3.2.3 Pay-as-you-go Systems with Constant Pensions -- 3.2.4 Capital Accumulation and Pay-as-you-go Pensions -- 3.2.5 Further Comments -- 3.3 PUBLIC SPENDING -- 3.3.1 Public Spending in the Competitive Economy -- 3.3.2 Public Spending: Optimal Financing -- 3.3.3 Second-best Policies -- 3.4 STUDY OF THE SECOND-BEST PROBLEM -- 3.4.1 Restating the Problem -- 3.4.2 Three Issues -- 3.4.3 A Standard Approach to the Problem -- 3.4.4 An Auxiliary Problem -- 3.5 APPLICATIONS AND EXTENSIONS
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3.5.1 Optimal Growth Rate of Population -- 3.5.2 Application: The Tax on the First Old Generation -- 3.5.3 Application: Financing Future Spending -- 3.5.4 Proportional Government Spending -- 3.6 CONCLUSION -- FOUR Debt -- 4.1 DIAMOND'S MODEL WITH DEBT -- 4.1.1 The Model -- 4.1.2 The Temporary Equilibrium -- 4.1.3 The Inter-temporal Equilibrium with Perfect Foresight -- 4.2 THE INTER-TEMPORAL BUDGET CONSTRAINT OF THE GOVERNMENT -- 4.2.1 Debt with the Two Types of Lump-sum Taxes -- 4.2.2 Debt with a Restriction of Only One Type of Lump-sum Tax -- 4.2.3 Ponzi Games -- 4.3 CONSTANT DEFICIT POLICIES -- 4.3.1 Balanced Budget Policies: Local Analysis -- 4.3.2 Balanced Budget Policies: Graphical Illustration -- 4.3.3 Non-zero Deficit: Local Analysis -- 4.3.4 Non-zero Deficit: Graphical Illustration -- 4.3.5 Ponzi Debt, Money, and Bubbles -- 4.4 CONSTANT DEBT POLICIES -- 4.4.1 Sustainability in the Short Run -- 4.4.2 Sustainability in the Long Run -- 4.4.3 Characteristics of Inter-temporal Equilibria -- 4.4.4 Policy Implications -- 4.5 APPLICATIONS AND EXTENSIONS -- 4.5.1 Constant Debt-Output Ratio -- 4.5.2 Deficits and Cycles -- 4.6 CONCLUSION -- Five Further Issues -- 5.1 DYNASTIC ALTRUISM: A BEQUEST MOTIVE -- 5.1.1 Modeling Voluntary Bequests -- 5.1.2 Marginal Analysis of Bequests -- 5.1.3 Altruism and the Neutrality of Economic Policy -- 5.1.4 When are Bequests Positive? -- 5.2 HUMAN CAPITAL AND EDUCATION -- 5.2.1 Modeling Education -- 5.2.2 Parental Funding: Private vs Public Education -- 5.2.3 Market Funding -- 5.2.4 The Tradeoff between Studying and Working -- 5.3 INTER-GENERATIONAL EXTERNALITIES -- 5.3.1 Inter-generational Taste Externalities in the Competitive Economy -- 5.3.2 The Optimal Allocation -- 5.3.3 Extensions -- 5.3.4 Conclusion -- 5.4 MACRO-ECONOMICS AND GENERAL EQUILIBRIUM -- 5.4.1 Modeling Arrow-Debreu Market Equilibria
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5.4.2 Arrow-Debreu Market Equilibria from... -- 5.4.3 Sequence Equilibrium from... -- 5.4.4 Arrow -Debreu Equilibria from... -- 5.4.5 Example -- 5.4.6 Conclusion -- Technical Appendices -- A.1 production functions -- A.1.1 Homogeneity -- A.1.2 Limits of f(k)and f(k) -- A.1.3 The Marginal Productivity of Labor -- A.1.4 The Limit of ω(k)/k -- A.1.5 The Cobb-Douglas Function as a Limit Case -- A.2 CALCULUS -- A 2.1 The Mean Value Theorem for Derivatives -- A.2.2 The Implicit Function Theorem -- A.2.3 Limits, lim sup, and lim inf -- A.2.4 Limit Points of Multi-dimensional Sequences -- A.3 DYNAMICAL ANALYSIS -- A.3.1 Monotonic Dynamics -- A.3.2 Local Stability (Dimension One) -- A.3.3 Linear Dynamics in the Plane -- A.3.4 Local Stability of Non-linear Dynamics (Dimension 2) -- A.3.5 Bifurcations of Monotonic Dynamics -- A.4 DYNAMIC OPTIMIZATION -- A.4.1 The Value Function -- A.4.2 Necessary and Sufficient Conditions for Optimality -- A.5 CALIBRATION AND SIMULATION -- A.5.1 The Cobb-Douglas Model -- A.5.2 The Model with a CES Production Function -- A.5.3 Introduction of Policies in the Model with CES Production -- A.5.4 Numerical Solution to Non-linear Forward-looking Models -- A.6 STATISTICS -- A.6.1 Dynamics of Distributions -- A.6.2 Normal and Log-normal Distributions -- A.1 PRODUCTION FUNCTIONS -- A.1.1 Homogeneity -- A.1.2 Limits off f(k) and f(k) -- A.1.3 The Marginal Productivity of Labor -- A.1.4 The Limit of omega (k)/k -- A.1.5 The Cobb-Douglas Function as a Limit Case -- List of Definitions -- List of Propositions -- List of Assumptions -- Bibliography -- Author Index -- Subject Index
Additional Edition:
Print version de la Croix, David A Theory of Economic Growth Cambridge : Cambridge University Press,c2002 ISBN 9780521806428
Language:
English
Keywords:
Electronic books
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