Overlapping generations model: Difference between revisions

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The '''overlapping generations (OLG) model''' is one of the dominating frameworks of analysis in the study of [[macroeconomic]] dynamics and [[economic growth]]. In contrast, to the  [[Ramsey–Cass–Koopmans model|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.

The OLG model is the natural framework for the study of: (a) the life-cycle behavior (investment in [[human capital]], work and [[Retirement plan|saving]] for [[retirement]]), (b) the implications of the [[resource allocation|allocation of resources]] across the generations, such as [[Social security|Social Security]], on the [[income per capita]] in the long-run,<ref>{{cite journal|last1=Imrohoroglu|first1=Selahattin|last2=Imrohoroglu|first2=Ayse|last3=Joines|first3=Douglas|year=1999|title=Social Security in an Overlapping Generations Economy with Land|journal=Review of Economic Dynamics|volume=2|issue=3|pages=638–665|doi=10.1006/redy.1999.0066}}</ref> (c) the determinatesdeterminants of economic growth in the course of human history, and (d) the factors that triggered the [[Demographic transition|fertility transition]].

== History ==