The motivation of this paper is to understand the effects of coupling a macroeconomic model of inflation rate dynamics, relying on an aggregate expectation, to a heterogeneous expectations framework. A standard model composed of Okun's law, an expectations-augmented Phillips curve and an...

In this application of an overlapping generations model the effects of a pay-as-you-go retirement scheme on the optimal savings rate, magnitude and stability of the equilibrium capital per capita level are established through the assumptions of explicit, well-behaved utility and production...

The paper formulates the fertility choice of a representative working woman in the context of a two-period OLG model. The starting point is a young working woman faced with the dilemma of having to simultaneous rear children and participate in the labor force. Discrete variable equivalents of...