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Steady State Growth Paths in a Continuously Overlapping Generations Model

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Peters, W. Steady State Growth Paths in a Continuously Overlapping Generations Model. Journal of Contextual Economics – Schmollers Jahrbuch, 107(4), 581-594. https://doi.org/10.3790/schm.107.4.581
Peters, Wolfgang "Steady State Growth Paths in a Continuously Overlapping Generations Model" Journal of Contextual Economics – Schmollers Jahrbuch 107.4, 1987, 581-594. https://doi.org/10.3790/schm.107.4.581
Peters, Wolfgang (1987): Steady State Growth Paths in a Continuously Overlapping Generations Model, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 107, iss. 4, 581-594, [online] https://doi.org/10.3790/schm.107.4.581

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Steady State Growth Paths in a Continuously Overlapping Generations Model

Peters, Wolfgang

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 107 (1987), Iss. 4 : pp. 581–594

1 Citations (CrossRef)

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Article Details

Peters, Wolfgang

Cited By

  1. Privates Sparen versus Sozialversicherung

    Literaturverzeichnis

    Zimmermann, Hans Georg

    1988

    https://doi.org/10.1007/978-3-642-83365-6_5 [Citations: 0]

Abstract

In a continuously overlapping generations model with technical progress steady states require Cobb-Douglas of log-linear utility functions if labor is treated explicitly as a decision variable of the individuals. Only in the absence of technical progress the preferences may be arbitrary. The golden rule of accumulation implies an equilibrium where either there is no outstanding debt of all living generations or all individuals do not save. The latter case is not implementable, because without saving capital accumulation is impossible. Even the first case can be unfeasible because the equilibrium price system requires r ≠ wK. Therefore the practicability of the golden rule is only a matter of chance.