We consider an overlapping generations model with heterogeneous agents where a person's probability of survival into old age is determined by a variable elasticity of substitution health production function with public and private expenditures as inputs. Analytical and numerical results reveal...

We incorporate a variable elasticity of substitution production function into an overlapping generations model à la Diamond (1965). We show that a certain parameter in the production function is a source of biased technical change is a crucial determinant of the economy's growth dynamics. For...

We develop an overlapping generations model to explore how the degree of aggregate substitutability between public and parental education expenditures impacts long run macroeconomic outcomes. Using a variable elasticity of substitution “education production function,” in which public and...