Sustained Growth in the Model of Overlapping Generations

This paper analyzes endogenous economic growth in the model of overlapping generations. There is no bequesl there any externalities. If the t motive, nor are capila the technology is convex, per t growth can occur only if I c economy has at least investment two sectors. This paper shows that the limiting marginal efficiency of I rale determines the potential for growth and that the t of growth depends upon the investmenl. share of the capital stock devoted to t enL Sustained consumption growth assumptions, can occur only under a fairly restrictive set of . There is an equilibrium high, with growth only if the marginal propensity to save is sufficiently .