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Target Saving in an Overlapping Generations Model
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Brishti Guha
Veröffentlicht/Copyright:
27. März 2008
We examine a model in which the utility function has been engineered so that it is optimal for consumers to aim for a fixed target level of retirement resources. In this case, consumption displays excess sensitivity to current income as well as perfect old age insurance. In an overlapping generations model, this leads naturally to multiple and unstable equilibria. Under static expectations, it also leads to a well-defined dynamics, including possible historical traps, implosions involving ever-diminishing capital stock and ever-increasing interest rates, and the feasibility of optimal one-time interventions.
Keywords: target saving; history; excess sensitivity; static expectations; rational expectations; uniqueness
Published Online: 2008-3-27
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Artikel in diesem Heft
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- The Evolution of International Output Differences (1970-2000): From Factors to Productivity
- Non-Linearities and Unit Roots in G7 Macroeconomic Variables
- Mitigating the Growth-Effects of Inflation through Financial Development
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- Job Reallocation, Unemployment and Hours in a New Keynesian Model
- Consolidation of Student Loan Repayments and Default Incentives
- Advent of Industrial Mass Production: Three Stages of Economic Development
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- Cyclical Behavior of Unemployment and Job Vacancies: A Comparison between Canada and the United States
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- On Equilibrium Determinacy in New Keynesian Models with Staggered Wage and Price Setting
- Contributions Article
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- Choosing Longevity with Overlapping Generations: To Be or Not to Be in Diamond's Model
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- Baumol's Diseases: A Macroeconomic Perspective
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- Endogenous Persistence and the Performance of Inertial Targeting Rules
- Unemployment, Imperfect Risk Sharing, and the Monetary Business Cycle
- Technological Progress and the Urbanization Process
- Convergence by Parts
- Estimating Returns to Schooling from State-Level Data: A Macro-Mincerian Approach
- Great Moderation(s) and US Interest Rates: Unconditional Evidence
- Advances Article
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- Monetary Policy under Downward Nominal Wage Rigidity
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Schlagwörter für diesen Artikel
target saving;
history;
excess sensitivity;
static expectations;
rational expectations;
uniqueness
Artikel in diesem Heft
- Topics Article
- The Importance of Industrial Policy in Quality-Ladder Growth Models
- The Evolution of International Output Differences (1970-2000): From Factors to Productivity
- Non-Linearities and Unit Roots in G7 Macroeconomic Variables
- Mitigating the Growth-Effects of Inflation through Financial Development
- The Dynamics of European Inflation Expectations
- Target Saving in an Overlapping Generations Model
- Inequality, Volatility and Labour Market Efficiency
- Expected Equity Returns and the Demand for Money
- Forecasting with DSGE Models: The Role of Nonlinearities
- Job Reallocation, Unemployment and Hours in a New Keynesian Model
- Consolidation of Student Loan Repayments and Default Incentives
- Advent of Industrial Mass Production: Three Stages of Economic Development
- The Japanese Depression in the Interwar Period: A General Equilibrium Analysis
- Determinants of Bilateral Remittance Flows
- Cyclical Behavior of Unemployment and Job Vacancies: A Comparison between Canada and the United States
- Economic and Socio-Political Determinants of de Facto Monetary Institutions and Inflationary Outcomes
- On Equilibrium Determinacy in New Keynesian Models with Staggered Wage and Price Setting
- Contributions Article
- Growth-Led Exports: Implications for the Cross-Country Effects of Shocks to Potential Output
- Monetary Policy and Fiscal Rules
- Choosing Longevity with Overlapping Generations: To Be or Not to Be in Diamond's Model
- Nonlinear Taylor Rules and Asymmetric Preferences in Central Banking: Evidence from the United Kingdom and the United States
- Baumol's Diseases: A Macroeconomic Perspective
- Employment Growth in the American Urban Hierarchy: Long Live Distance
- Endogenous Persistence and the Performance of Inertial Targeting Rules
- Unemployment, Imperfect Risk Sharing, and the Monetary Business Cycle
- Technological Progress and the Urbanization Process
- Convergence by Parts
- Estimating Returns to Schooling from State-Level Data: A Macro-Mincerian Approach
- Great Moderation(s) and US Interest Rates: Unconditional Evidence
- Advances Article
- Downward Nominal Wage Rigidity in the OECD
- Monetary Policy under Downward Nominal Wage Rigidity
- Africa: Is Aid an Answer?
