Welfare Evaluation of Policies in an Overlapping Generations Growth Model
نویسندگان
چکیده
In the classical growth model, with overlapping generations and continuous time starting at −∞, generically there exist a unique equilibrium in the policy-neighbourhood of any balanced growth equibrium as shown in [4]. Policies are endowment perturbations. In this paper we show that, for any such equilibrium selection, welfare is differentiable, and that the derivative at the balanced growth equilibrium can be computed analytically from the primitives of the model.
منابع مشابه
Investigating the risk-taking behavior of the banking industry in the form of the general equilibrium model of overlapping generations (OLG)
In this paper, using a general equilibrium model of overlapping generations, the impact of different financing plans of the banking industry on their risk-taking motivation is investigated. In the non-competitive banking industry, financing is done by imposing taxes on the older generation or the bankchr('39')s internal resources (bank shares). As an effective policy, this action optimizes soci...
متن کاملDiscounting and Welfare Evaluation of Policies
If policy discounting is to have any welfare relevance, it must be a derivative of a social welfare function. If that derivative is to have a net present value (npv) form, the baseline allocation must be stationary. Given a stationary baseline in an overlapping generations growth economy the inter-generationally fair discount rate under the relative utilitarian welfare function equals the growt...
متن کاملThe Survey of Conditions for Establishment of the Double Dividend Hypothesis: An Overlapping Generations Approach.
This paper, we analyze the double-dividend issues by the design of overlapping generations approach. We characterize the necessary conditions for the obtaining a double dividend, i.e. an improvement of environmental and non-environmental welfare when the revenue of the pollution taxis recycled into a change of the labor tax rate. We show that first advantage of the double dividend theory depend...
متن کاملAnalysis of Electricity Generation’s Externalities on Sectorial Output Growth and Welfare in Iran
Environmental problems are one of the most challenging issues for the entire world and each country. In economic studies, environmental issues are analyzed as negative externalities. In this article, the negative externalities of electricity production on the output growth of different sectors and household’s welfare in Iran’s economy have been studied through price system using Computable Gene...
متن کاملOverlapping Generations: The First Jubilee
Paul Samuelson’s (1958) overlapping generations model has turned 50. Seldom has so simple a model been so influential. Its “wow” factor, and the feeling of surprise at its originality and coolness have not paled with the years. The paper, in spite of its ripe age, still elicits wonder. Starting from the uncontroversial observation that “we live in a world where new generations are always coming...
متن کامل