Title: A theory of economic growth : dynamics and policy in overlapping generations /
Authors: La Croix, David de.; Michel, Philippe.
Publisher: Cambridge University Press,
Year: 2002
Subjects: Macroeconomics.; Economic development.; Economic policy.; Generational accounting.
Abstract: "This book provides an in-depth treatment of the overlapping generations model in economics incorporating production. In chapter 1, the authors investigate competitive equilibria and corresponding dynamics: existence and uniqueness of equilibrium, global dynamics of capital (including poverty traps), and various extensions of the model. Chapter 2 analyzes the optimality of allocations in this framework, using both the value function and marginal approaches. Optimality with unbounded growth is also analyzed. Policy issues, including the Second Welfare Theorem, pensions, government spending, and optimal taxation, are discussed in chapter 3. The notion of public debt is introduced in chapter 4, and the sustainability of policies with budget deficits/surpluses is examined.