Asset bubbles in an overlapping generations model with endogenous labor supply

Asset Bubbles and Overlapping Generations

The Taxation of Saving Returns in Overlapping Generations Economies with Stochastic Asset Bubbles

In the standard simple overlapping generations model with production (Diamond (1965)), the steady state competitive equilibrium level of capital under laissez-faire does not typically maximize the net production if the agents can save only in terms of capital. In particular, whenever the steady state competitive equilibrium level of capital is too high, net production and consumption can be inc...

An overlapping-generations model with search

Search is embeded in an overlapping-generations model. Young people participate a centralized market and a decentralized market sequentially and olds only participates the centralized market. The demographic feature allows analytical tractability. In a series examples, positve inflation rates are Pareto optimal. JEL classification: E31

An Overlapping Generations Model of Electoral Competition

This paper presents a dynamic model of political competition between two "parties" with different policy preferences. A "party" is explicitly modelled as a sequence of overlapping generations of candidates, all of whom face finite decision horizons. In general, there is a conflict between the interests of the individual policymakers and those of the "party" , which includes subsequent generatio...

Indeterminacy and Asset Price Volatility in Stochastic Overlapping Generations Models∗

This paper addresses the e ects of indeterminacy on the volatility of asset prices in a stochastic overlapping generations model with 3-period lived agents. With complete markets, indeterminacy is characterized by the initial conditions and all equilibria converge to one of the deterministic steady states in the long run. With incomplete markets, the degree of indeterminacy is countably innite....