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- W38360082 abstract "Publisher Summary In overlapping generations models, the consumption sector of the economy consists of consumers of different ages. Each individual consumer has an income that varies with his age and that may be zero during a period of retirement. It is assumed that the consumer chooses consumption in each year of his life so as to maximize a lifetime utility function, given his lifetime income. The paths of income and of consumption do not coincide in general. The difference between the two is individual saving and dissaving. The total saving of the economy is determined by the pattern of saving and dissaving of different generations. It is usually assumed that individuals do not receive bequests and do not leave bequests, but that is by no means essential and introduction of bequests is possible. The overlapping generations model is also used to explain the consumption function and savings behavior of the whole economy. Empirical work had shown that the savings ratio of the economy was more or less constant over time. Modigliani showed that in an economy with overlapping generations and identical savings behavior of all generations over their lifetime, a constant savings ratio will result. The level of saving then depends on growth rates of population and technology. Modigliani's work had a macroeconomic character and he used the model to study macroeconomic problems." @default.
- W38360082 created "2016-06-24" @default.
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- W38360082 date "1990-01-01" @default.
- W38360082 modified "2023-09-27" @default.
- W38360082 title "Overlapping Generations Models, an Introduction" @default.
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- W38360082 doi "https://doi.org/10.1016/b978-0-12-711703-4.50013-5" @default.
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