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This paper provides general equilibrium estimates of the steady-state welfare gains of lowering inflation from a low level to close to price stability, using an overlapping-generations growth model. Money demand is modeled on the basis that real money balances are a factor of production....
Persistent link: https://www.econbiz.de/10012782195
In an overlapping generations model with finite lifetimes sustained growth is possible if there is a positive risk of death. A redistribution occurs when non-altruistic parents leave unintended bequests to their children
Persistent link: https://www.econbiz.de/10013059849
education with and without capital markets integration. First, we explore how regimes of education provision - public, private …-run effects of capital markets integration, in equilibrium, on the optimal provision of education and growth. Third, we examine a … competition game where countries compete in the provision of public education …
Persistent link: https://www.econbiz.de/10013321091
According to Homburg's (2014) comment on Kim and Lee (1997), an ad-valorem property tax on land cannot cause dynamic ineffi ciency of equilibrium allocations in an overlapping-generations model unless the tax is "confiscatory", i.e., equal to or greater than land rents. With such a tax, Homburg...
Persistent link: https://www.econbiz.de/10012242764
not only penalized in front of death, they are also penalized in the access to education. Epidemics are modeled as one … mainly rely on orphans: if orphans are more penalized in the access to a high level of education than in front of death, they …
Persistent link: https://www.econbiz.de/10014224546
We propose a framework for understanding recurrent historical episodes of vigorous economic expansion accompanied by extreme asset valuations, as exhibited by the U.S. in the 1990s. We interpret this phenomenon as a high-valuation equilibrium with a low effective cost of capital based on...
Persistent link: https://www.econbiz.de/10014100918
We examine the effect of demographic shifts on asset prices in an overlapping generations model with endogenous population dynamics. We establish a robust inverse relationship between returns and the old dependency ratio. We document the absence of a simple monotonic relationship between asset...
Persistent link: https://www.econbiz.de/10013466466
Age structured populations are studied in economics through overlapping generations models. These models allow for a realistic characterization of life-cycle behaviors and display intertemporal equilibrium that are not necessarily efficient. This article uses the latest developments in...
Persistent link: https://www.econbiz.de/10014189158
Persistent link: https://www.econbiz.de/10009781343
education with and without capital markets integration. First, we explore how regimes of education provision - public, private …-run effects of capital markets integration, in equilibrium, on the optimal provision of education and growth. Third, we examine a … competition game where countries compete in the provision of public education. …
Persistent link: https://www.econbiz.de/10009781565