Dynamic efficiency in the two-sector overlapping generations model

Please use this identifier to cite or link to this item: https://doi.org/10.1016/j.jedc.2005.05.012

Title:	Dynamic efficiency in the two-sector overlapping generations model
Authors:	Cremers, E.T.
Keywords:	Dynamic efficiency Overlapping generations Two-sector
Issue Date:	2006
Citation:	Cremers, E.T. (2006). Dynamic efficiency in the two-sector overlapping generations model. Journal of Economic Dynamics and Control 30 (11) : 1915-1936. ScholarBank@NUS Repository. https://doi.org/10.1016/j.jedc.2005.05.012
Abstract:	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. For the special case of a log-linear world, the golden rule savings rate is identified along with restrictions on parameters that yield dynamically efficient steady states. The results are further demonstrated via a welfare analysis of a simple tax/subsidy scheme. © 2005 Elsevier B.V. All rights reserved.
Source Title:	Journal of Economic Dynamics and Control
URI:	http://scholarbank.nus.edu.sg/handle/10635/22370
ISSN:	01651889
DOI:	10.1016/j.jedc.2005.05.012
Appears in Collections:	Staff Publications

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