Pareto optimality of the golden rule equilibrium in an overlapping generations model with production and transfers

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 CES instantaneous felicity. In addition, we extend Cass and Yaari's [10] equivalence between efficiency (aggregate consumption dominance) and the present value dominance (with evaluation made using a candidate equilibrium price path).

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Year of publication:	2012-09-14
Authors:	MERTENS, Jean-François ; RUBINCHIK, Anna
Institutions:	Center for Operations Research and Econometrics (CORE), École des Sciences Économiques de Louvain
Subject:	infinite economies \| overlapping generations \| exogenous growth \| golden rule equilibrium

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Extent:	application/pdf
Series:	CORE Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE) Number 2012033
Classification:	D50 - General Equilibrium and Disequilibrium. General ; E20 - Consumption, Saving, Production, Employment, and Investment. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010610469