Cazzavillan, Guido; Pintus, Patrick A. - In: Review of Economic Dynamics 7 (2004) 2, pp. 456-475
This paper extends the standard Diamond's two-period OLG model of capital accumulation by introducing labor-leisure choice into the first-period of agents' life. Under the assumption of gross substitutability, we show that multiple intertemporal equilibria require both highly complementary...