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Friday, May 8, 2020 | History

2 edition of Debt policy in a competitive two-sector overlapping generations model found in the catalog.

Debt policy in a competitive two-sector overlapping generations model

Partha Sen

# Debt policy in a competitive two-sector overlapping generations model

## by Partha Sen

Published by Centre for Development Economics, Dept. of Economics, Delhi School of Economics in Delhi .
Written in English

Subjects:
• Debts, Public -- Econometric models.

• Edition Notes

Includes bibliographical references (p. 13-14).

Classifications The Physical Object Statement Partha Sen. Series Working paper -- no. 137 Contributions Delhi School of Economics. Centre for Development Economics. LC Classifications HJ8015 .S46 2006 Pagination 15 p. ; Number of Pages 15 Open Library OL16906806M LC Control Number 2007394814

Chapter 9 ﬁrst introduces the overlapping generations model as a version of the general competitive model with a peculiar preference pattern. It then goes on to use a sequential formulation of equilibria to display how the overlapping generations 2 The equivalence is through duality, in the sense of mathematical programming. Centre for Development Economics. Tariffs and Welfare in an Imperfectly Competitive Overlapping Generations Model. Partba Sen. Working Paper No. ABSTRACT. The effects of a tariff is analyzed ina two-sector model in an uncertain lifetimes framework. One of the sectors is .

Other new material includes a multi-country analysis of taxation in a growth model, elaborations of the fiscal theory of the price level, and age externalities in a matching model. The book is suitable for both first- and second-year graduate courses in macroeconomics and monetary economics. Most chapters conclude with exercises. model government rate function optimal economy capital constraint price values allocation condition tax worker household interest money endowment policy labor assume utility agents budget equations competitive

AbstractIn this study, we examine dynamic allocation of resources and consumption over an infinite time horizon in an overlapping-generations model with two-sided altruism. Each generation cares not only about its own consumption and the utility of its successor, but also about the utility of its parental generation. The consumption decisions of different generations could display time Cited by: 1. The overlapping generations (OG) model is an open-ended dynamic economic model that incorporates birth and death. The OG model thus facilitates the study of efficiency and distributional issues from an appealing microfoundations premise: Institutions may be long-lived, but people are mortal.

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### Debt policy in a competitive two-sector overlapping generations model by Partha Sen Download PDF EPUB FB2

In a competitive two-sector overlapping generations model, I look at the effect of an increase in government debt on welfare, especially in the new steady state. 3Author: Partha Sen. Debt Policy in a Competitive Two-Sector Overlapping Generations Model Partha Sen Abstract We analyse debt policy in a two-period, two-sector overlapping generations model with Leontief technologies.

We find that debt, issued to transfer resources to the initially old, could be welfare improving in the new steady state for an.

Downloadable. We analyse debt policy in a two-period, two-sector overlapping generations model with Leontief technologies. We find that debt, issued to transfer resources to the initially old, could be welfare improving in the new steady state for an economy which satisfies the usual conditions for dynamic efficiency viz.

the rate of interest is at least as great as the population growth rate. Downloadable. In this paper debt policy in a two-period, two-sector overlapping generations model with Leontief technologies has been analysed.

It has been found that debt, issued to transfer resources to the initially old, could be welfare improving in the new steady state for an economy which satisfies the usual conditions for dynamic efficiency viz.

the rate of interest is at least as great. The overlapping generations (OLG) model is one of the dominating frameworks of analysis in the study of macroeconomic dynamics and economic contrast, to the Ramsey–Cass–Koopmans neoclassical growth model in which individuals are infinitely-lived, in the OLG model individuals live a finite length of time, long enough to overlap with at least one period of another agent's life.

"Debt Policy in a Competitive Two-Sector Overlapping Generations Model," Working papersCentre for Development Economics, Delhi School of Economics. Emily T. Cremers & Partha Sen, "Transfers and the Terms of Trade in an Overlapping Generations Model," Working papersCentre for Development Economics, Delhi School of Economics.

Abstract. We study a two-sector $$\textit{OLG}$$ economy in which a share of old age consumption expenditures must be paid out of money balances and we appraise its dynamic features.

We first show that competitive equilibrium is dynamically efficient if and only if the share of capital on total income is large enough while a steady state capital per capita above its Golden Rule level is not Author: Antoine Le Riche, Francesco Magris.

In a two-sector overlapping generations model with fixed coefficients the steady state may be indeterminate, if production in the consumption goods sector is more capital intensive than in the Author: Alain Venditti.

“Debt Policy in a Competitive Two-Sector Overlapping Generations Model”, Arthaniti (10) "Transfers, the Terms of Trade and Capital Accumulation".

Canadian Journal of Economics, [co-author Emily Cremers]. "Fixed Costs, the Balanced-Budget Multiplier and Welfare," Japanese Economic Review (60), This paper examines dynamic efﬁciency in the context of a two-sector overlapping generations model.

First, conditions for dynamic efﬁciency in a centrally planned economy are derived. Then, in a competitive environment, the implications of dynamic (in)efﬁciency for the steady state relative price and steady state welfare are demonstrated. The recent dramatic rise of government deficits in most advanced countries to counter the effects of the global financial crisis arouses renewed interest for one of the perennial topics of fiscal policy: the sustainability of government debt.

This paper explores maximum sustainabile debt in a two-good, two-country overlapping generations (OLG) model and analyzes existence and dynamic stability Cited by:   The first appendix contains a proof of the golden rule of capital accumulation with zero population growth.

The second appendix, which contains a two-sector overlapping generations model, analyses how government policies (such as taxation and public debt) influence private capital formation. Public debt in an OLG model with imperfect competition Peter Skott and Soon Ryooy Septem Abstract Fiscal policy is needed to avoid dynamic ine¢ ciency and maintain full employment in a modi–ed Diamond OLG model with imperfect competi-tion.

A distributionally neutral tax scheme can maintain full employment. Galor and Ryder [15–17] advanced the literature by examining the condi- tions for the existence of equilibrium for a one-sector OLG model with productive capital.

2 In another seminal work, Galor [14] developed a two-sector overlapping-generations model and characterized the dynamic system by: The model, based on intertemporal optimization, emphasizes the labor-leisure choice and the role of capital accumulation There are two main conclusions to be drawn from the analysis.

The first 1s that in all cases the transitional dynamics depends critically upon the long-run response of the capital stock to the deterioration m the terms of trade.

This paper develops a two-sector overlapping-generations model. It characterizes the dynamical system globally and establishes sufficient conditions for the existence of a. This paper analyses the dynamics of a two-dimensional overlapping generations model with young and old age labour supply.

It is shown that the public provision of health investments, which, in turn, affects the demand for material consumption, may represent a source of local indeterminacy, nonlinear dynamics and multiplicity of equilibria. Weil's infinitely lived overlapping-generations model, in which there are many heterogeneous generations, to a model with endogenous growth, and examine the effect of monetary policy on economic growth through the intergenerational redistributions.2 Money is introduced based on the standard money-in.

At this point, we have to ‘close’ the model so that we can return to a steady-state equilibrium, i.e. we cannot continue to reduce the debt–GDP ratio indefinitely and reach a steady state, and instead have to alter fiscal policy to ensure that the deficit is consistent with a steady-state debt of 45% of GDP, which implies a steady-state Cited by: Macroeconomic Volatility and Trade in OLG Economies We formulate a two-country two-good two-factor overlapping generations model where coun- two-factor (capital and labor) two-sector model in which the two factors are internationally mobile and countries Cited by: 1.

The circular flow model in the two-sector economy is a hypothetical concept which states that there are only two sectors in the economy, household sector and business sector (business firms). The household sector is the source of factors of production who .“Existence of Competitive Equilibrium in a General Overlapping-Generations Model” (with Yves Balasko and David Cass), Journal of Economic Theory, Vol.

23(3), December“The Overlapping-Generations Model, I: The Case of Pure Exchange without Money” (with Yves Balasko), Journal of Economic Theory, Vol. 23(3), December Back. A. Amano () "A Further Note on Professor Uzawa's Two-Sector Model of Economic Growth", Review of Economic Studies, Vol.

31, p E. Burmeister () "The Role of the Jacobian Determinant in the Two-Sector Model", International Economic Review, Vol. 9 (2), p E. Burmeister and A.R. Dobell () Mathematical Theories of Economic Growth.