Intertemporal Preferences, Distributive Shares, and Local Dynamics

This paper provides a simplified version of the perfectly flexible wages OLG model proposed by Hahn and Solow (1995). Using a Cobb-Douglas specification for the utility and the production functions, we demonstrate that the local stability of the steady-state equilibrium depends only on intertemporal preferences and distributive shares. Furthermore, we show that local stability might be related to consumption smoothing considerations.

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Year of publication:	2004-01-01
Authors:	Guerrazzi, Marco
Institutions:	Dipartimento di Economia e Management, Università degli Studi di Pisa
Subject:	Overlapping Generations \| Market Clearing \| Local Stability

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Extent:	application/pdf
Series:	Discussion Papers.
Type of publication:	Book / Working Paper
Classification:	D11 - Consumer Economics: Theory ; D24 - Production; Capital and Total Factor Productivity; Capacity
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005769620