Across countries, government expenditures tend to favor the elderly. This paper provides a political economy explanation for this phenomenon. I consider the classic problem of dividing a fixed payoff in an overlapping generations setting. Any share of the payoff can be given to any generation....

In an ongoing organization, such as a large law partnership firm, employees are motivated not only by current rewards but also by the prospect of promotion, and the opportunity to make the rules in the future. This leads to a recursive contract design problem in an overlapping generations...

Summary We compare projection methods with the standard value function grid algorithm in order to solve overlapping generations models. We apply the methods to a particular 60-period OLG model with elastic labor supply in order to study the effects of unfunded public pensions on aggregate...

Abstract Monetary policy is superneutral in an overlapping generations model. Previous authors have argued that superneutrality does not hold in such a setting. However, the standard results rely on the counter-factual premise of helicopter money and are overturned if money creation through open...

This paper considers a one-sector overlapping-generations model with production. We observe that under standard assumptions on preferences and technology, the perfect-foresight equilibrium violates positivity constraints for large sets of initial conditions. The consideration of the positivity...

Purpose The purpose of this paper is to explore the effects of population growth (PG), environmental quality and trade openness on economic growth of major developed and developing countries. Design/methodology/approach The authors have used the panel unit root and panel co-integration tests...

Abstract This paper presents a model that can account for the gender specialization of skill acquisition in the presence of competitive matching. In particular we show that when the comparative advantage in nonmarket domestic activities belongs to women, an incentive arises for them to...

Purpose – The purpose of this paper is to shed light on the effect of high‐level human capital investment, using tertiary education as the proxy, on the urban‐rural income gap in China. Design/methodology/approach – Using a panel dataset covering 28 provinces of China over the period...