This paper presents a continuous time overlapping-generation (OLG) model which generalizes the Blanchard-Buiter-Weil model and clarifies the relationships between dynastic previous termaltruismnext term, the length of planning horizons, and dynamic inefficiency. Our main innovation relies on the...

We analyze an overlapping generations model where agent’s welfare depends on three goods: leisure, environmental quality and consumption of a private good. We assume that the production process of the private good depletes the natural resource and that the consumption of the private good...

We analyze an overlapping generations model where individuals’ welfare depends on the stock of a free access environmental good E and on the consumption C of a private good. We assume that the production process of the private good depletes the natural resource but that specific investments...

In dynamic economic models derived from optimization principles, the forward equilibrium dynamics may not be uniquely de…fined, while the backward dynamics is well de…fined. We derive properties of the global forward equilibrium paths based on properties of the backward dynamics. We propose...

This paper develops an overlapping-generations (OLG) model to analyze the consequences of demographic structure changes induced by an exogenous shift in the birth rate.We first show that a finite growth rate of the population that maximizes long-run capital per capita exists. Then, we examine...

This paper studies the intertemporal equilibrium of a barter economy populated with a continuum of …finitely-lived overlapping generations. Assuming isoelastic preferences and zero endowments at the beginning and the end of the individual's life-span, it proves the existence of an Hopf...

We present a continuous time overlapping generations model for an endowment Arrow-Debreu economy with an age-structured population. For an economy with a balanced growth path, we prove that Arrow-Debreu equilibrium prices exist, and their dynamic properties are age-dependent. Our model allows...

Despite similar levels of per capita income, education and technology, the development of labour income shares in OECD countries has displayed different patterns since 1960. The paper examines the role of demography in this regard. We first use a standard overlapping generations model to derive...