The theoretical determinants of maximum sustainable government debt are investigated using Diamond's overlapping-generations model. A level of debt is defined to be 'sustainable' if a steady state with non-degenerate values of economic variables exists. We show that a maximum sustainable level...

We analyze an overlapping generations model of voting over ``reform projects''. These resemble investments in that they first require some investment expenditure and later bring a payoff; consequently, older people are more conservative (against reforms) than younger ones. We show that if people...

This paper examines the equilibrium relation, within the non-specialized area, between the current account and the terms-of-trade in a two-country/sector growth model. Along a convergent eqirilibrium path, this relation can have any sign depending on the trading sectors' relative factor...

This paper investigates fiscal sustainability in an overlapping generations economy with endogenous growth coming from human capital formation through educational spending. We assess how budgetary imbalances affect economic dynamics and the outlook for economic growth, thereby providing a...

This paper aims to address the issue of public pension reforms under demographic ageing that is likely to occur in Europe over the next 50 years. Three possible scenarios are analysed in a Blanchard OLG framework. These include: i) a decrease both in public pensions and the lump sum labour...

We construct a simple exchange economy overlapping generations model in which there are along with a public social security various private insurance schemes to explore fertility and the effects of various variables on it. In the private system parents can invest in children and benefit from...

In this paper we develop an overlapping generation version of Kiyotaki and Moore's (hereafter KM) model of the "Credit Cycle". In each period the population consists of two classes of agents: a group of financially constrained agents ("farmers") and one of unconstrained agents ("gatherers")....