Overlapping generations models may have a continuum of equilibria. Previous studies have been largely confined to the local analysis that linearizes the model around the steady state. However, what is true of the linearized system only applies for an unknown-sized open neighborhood of the steady...

Overlapping generations models may have a continuum of equilibria. Previous studies have been largely confined to the local analysis that linearizes the model around the steady state. However, what is true of the linearized system only applies for an unknown-sized open neighborhood of the steady...

We study an exchange economy with overlapping generations of consumers who derive utility from consuming a non-durable commodity and housing. A banking sector offers loans to finance housing. We provide a complete characterization of the equilibrium dynamics which alternates between an expansive...

New evidence suggests that individuals “learn from experience,” meaning they learn from events occurring during their lives as opposed to the entire history of events. Moreover, they weigh more heavily recent events compared to events occurring in the distant past. This paper analyzes the...

This paper examines the effects on economic growth attributable to government policies of child allowances and educational subsidies. We show that multiple steady states may arise under these two policies, with club convergence occurring, and the initial condition being of relevance, if the tax...

This paper presents a Dynamic New Keynesian model with wealth effects to study the performance of monetary policy under Ricardian and non-Ricardian fiscal regimes. The model is calibrated to euro area quarterly data. The interactions between fiscal policy and interest rate rules have critical...