scholarly journals On the interaction between risk sharing and capital accumulation in a stochastic OLG model with production

2007 ◽  
Vol 137 (1) ◽  
pp. 568-579 ◽  
Author(s):  
Martin Barbie ◽  
Marcus Hagedorn ◽  
Ashok Kaul
Keyword(s):  
Capital Accumulation ◽  
Risk Sharing ◽  
Olg Model

scholarly journals Capital Accumulation and Fiscal Policy in an OLG Model with Family Altruism

2006 ◽  
Vol 8 (3) ◽  
pp. 465-486 ◽  
Author(s):  
STEPHANE LAMBRECHT ◽  
PHILIPPE MICHEL ◽  
EMMANUEL THIBAULT
Keyword(s):  
Fiscal Policy ◽  
Capital Accumulation ◽  
Olg Model

scholarly journals Intergenerational risk sharing within funded pension schemes

2010 ◽  
Vol 10 (1) ◽  
pp. 1-29 ◽  
Author(s):  
JIAJIA CUI ◽  
FRANK DE JONG ◽  
EDUARD PONDS
Keyword(s):  
Risk Sharing ◽  
Asset Returns ◽  
Olg Model ◽  
Welfare Gain ◽  
Pension Schemes ◽  
Intergenerational Risk ◽  
Entry Cohort ◽  
Intergenerational Risk Sharing ◽  
The Cost ◽  
Pension Benefits

AbstractIs intergenerational risk sharing desirable and feasible in funded pension schemes? Using a multi-period OLG model, we study risk sharing between generations for a variety of realistic collective funded pension schemes, where pension benefits and contributions may depend on the funding ratio and the asset returns. We find that well-structured intergenerational risk sharing via collective schemes can be welfare-enhancing vis-à-vis the optimal individual benchmark. Moreover, from an ex ante perspective the expected welfare gain of the current entry cohort is not at the cost of the older and future cohorts.

scholarly journals THE RELATIONSHIP BETWEEN PUBLIC AND PRIVATE HEALTH INVESTMENT AND ECONOMIC DEVELOPMENT BASED ON THE OVERLAPPING GENERATIONS (OLG) MODEL

2021 ◽  
Vol 27 (spe) ◽  
pp. 105-107
Author(s):  
Shuihui Jiang
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Economic Development ◽  
Capital Accumulation ◽  
Capital Investment ◽  
Overlapping Generations ◽  
Human Capital Investment ◽  
Olg Model ◽  
Healthy Human ◽  
The Relationship

ABSTRACT As an important part of human capital, healthy human capital plays a great role in promoting economic development. Based on the overlapping generations (OLG) model, this study establishes a correlation analysis model between healthy human capital and economic growth. This model takes utility maximization as the theoretical carrier to study how individuals promote economic growth while pursuing the maximization of their own health capital accumulation. The model can analyze the promotion mechanism of healthy human capital on economic growth, so as to provide decision support for relevant personnel. Taking the panel data of 11 provinces and cities in China as samples, this paper makes an empirical analysis of the model. The results show that healthy human capital investment in coastal areas is generally high, and the relationship between healthy human capital and economic growth conforms to the inverted U-shaped development model, so we should pay attention to the reasonable proportion of healthy human capital investment. In addition, from the fitting effect of the regression model, the F-statistic values of model 1 and model 2 are 672.6327 and 1240.188, which shows that the fitting accuracy of the two regression models is higher.

GROWTH AND IRREVERSIBLE POLLUTION: ARE EMISSION PERMITS A MEANS OF AVOIDING ENVIRONMENTAL AND POVERTY TRAPS?

2011 ◽  
Vol 17 (2) ◽  
pp. 261-293 ◽  
Author(s):  
Fabien Prieur ◽  
Alain Jean-Marie ◽  
Mabel Tidball
Keyword(s):  
Pollution Control ◽  
Capital Accumulation ◽  
Multiple Equilibria ◽  
Double Dividend ◽  
Poverty Traps ◽  
Critical Threshold ◽  
Olg Model ◽  
Emission Permits ◽  
Emission Quota

We consider an OLG model with emissions arising from production and potentially irreversible pollution. Pollution control consists of the assignment of permits to firms; private agents also can abate pollution. In this setting, we prove that multiple equilibria exist. Due to the possible irreversibility of pollution, the economy can be dragged into both environmental and poverty traps. First, we show that choosing an emission quota at the lowest level beyond a critical threshold is a means to avoid these two types of traps. We also prove that when the agents do not engage in maintenance, a reduction of the quota leads to a reduction in pollution but also to slower capital accumulation. In contrast, when agents do engage in maintenance, a reduction of the quota provides a double dividend.

Dynamic macro II: The stochastic OLG model

2018 ◽  
Author(s):  
Hans Fehr ◽  
Fabian Kindermann
Keyword(s):  
General Equilibrium ◽  
Policy Analysis ◽  
Risk Sharing ◽  
Overlapping Generations ◽  
Labour Supply ◽  
General Structure ◽  
Labour Productivity ◽  
Olg Model ◽  
Individual Behaviour ◽  
The Government

In Chapters 6 and 7 we discussed how to compute overlapping generations models and how to use them for policy analysis. The models developed there are completely deterministic in that they exclude both income and investment risk. While this ensured analytical tractability of the household problem and greatly facilitated computation, it certainly limit the scope of policy analysis. Consequently these chapters centred around clarifying the impact of public policy on the labour-supply and savings decisions of households and around evaluating its consequences for intergenerational redistribution. In practice, however, households face all kinds of risks that cannot be insured perfectly by the market. This opens up an additional channel through which the government could increase households’ welfare, namely by providing public insurance. In Chapter 10, we studied individual behaviour in an uncertain world, where individuals face idiosyncratic labour income and mortality risk as well as aggregate capital-market risk. The models therein are partial equilibrium models, meaning that prices are fixed and there is no need for the government to operate a balanced budget. In this chapter, we embed a household’s decision model with idiosyncratic labour-productivity risk and endogenous labour-supply decisions into a general equilibrium framework, which leads us to the stochastic OLG model. In this setup, factor prices respond to changes in individual behaviour and the government will be an explicit entity that collects revenue from taxes to finance its expenditure. Such a setup allows us to analyse both the distortionary and the risk-sharing effects of public policies. This chapter is organized in three main sections. The first two closely follow the setup of Chapter 6. We first explain the general structure of the stochastic OLG model with all its actors and conduct some steady-state policy analysis. We then discuss how to extend the model to include a transition path between steady states and to compute aggregate efficiency effects. In the last section, Section 11.3, we provide some policy applications where we analyse optimal tax schedules and the optimal size of the social-security system in more detail. In the following, we extend the life-cycle model with variable labour supply from Section 10.1.2 to a full general equilibrium setup with overlapping generations.

Sign in / Sign up

Export Citation Format

Share Document