Optimal Fiscal Policy in Overlapping Generations Models

Fiscal consolidation and climate policy: An overlapping generations perspective*

Available online 23 September 2013

Optimal Fiscal Policy in Dynamic Models

Overlapping Generations Models

The specific feature of the Overlapping Generations Model is that new cohorts are born in every period, live for a number of periods and die. Consequently, at any point in time, society is composed of individuals belonging to the different generations that are currently alive. Because of the demographic structure of the population, no trade involving individuals about to die is possible and hen...

Fiscal Policy Effects in a Heterogeneous-Agent Overlapping-Generations Economy With an Aging Population

Among the models that the Congressional Budget Office uses to analyze the economic effects of changes in federal fiscal policy is a life-cycle growth model with overlapping generations of heterogeneous households. In this paper, we extend a similar dynamic model by incorporating a population that ages in a manner consistent with projections for the United States. Under that extension, gross dom...

Optimal Fiscal Policy With Oil Revenues