This article surveys models of endogenous growth which are based on the microeconomic theory of family behaviour. A special emphasis is placed on the suggested formalization of the preferences, demographic behaviour, investment in human capital, production technology, labour market, and...

This paper provides a new explanation why several US states have implemented supermajority requirements for tax increases. We model a dynamic and stochastic OLG economy where individual preferences depend on age and change over time in a systematic way. In this setting, we show that the first...

This paper construct a general equilibrium overlapping generation model to evaluate quantitatively how demographic transition (falling mortality and fertility rates) affects aggregate variables (wages, interest rate, output), and inter-generational welfare in closed and open economies. We...

Summary This paper questions the view that a rise of the retirement age does not reduce the financial problems of a pay-as-you-go public pension system if individuals receive compensations for additional years spent in the labor force. It is shown that rather utility compensation is required...

Summary This paper examines the distributional and efficiency effects of pension privatization in Germany. Starting from a benchmark that reflects the current unfunded pension system, a fully funded system is introduced. The accrued benefits of the old system are financed by alternative tax...

Summary Models which are built on the assumption of rational expectations can easily outline the conditions under which bubbles may exist but they remain silent on the factors that cause the price to deviate from the fundamental value. In this paper it is argued that dynamic extensions of the...