di钻石增长模型.pdfVIP

1. Assumptions Period In Model Generation 1 2 3 4 Born at: 1 Young Old 2 Young Old 3 Young Old ▪ Overlap generations (OLG) model ▪ There is turnover in the population • New individuals are continually born, and old individuals are continually dying ▪ With turnover, it is simpler to assume that time is discrete: • t = 0, 1, 2,… 2 1. Assumptions ▪ Each individual lives for only two periods ▪ It is the assumption of turnover in the population that makes the OLG model to have some very different results than the Ramsey-Cass-Koopmans model ▪ Lt young individuals are “born”in each period ▪ The rate of population growth is still n ▪ Individuals supply 1 unit of labor when young, and 0 when old ▪ Young individuals divide the labour ween their first- period consumption and saving ▪ In the second period, the young individuals e old ones who consume the saving and any interest they earn 3 1. Assumptions ▪ Let C1t and C2t denote the consumption in period t of young and old individuals ▪ The utility of an individual born at t can be given by C1-q 1 C1-q Ut = 1t + 2t +1 , q0, r -1 1-q 1+ r 1-q ▪ There are many firms, each with the production function: • Y = F(K , A L ) with constant returns to scale (CRS) and t t t t satisfying the Inada conditions • A again grows at exogenous rate g [so At