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On Overlapping Generations Models with Productive Capital

  • Günther Lang

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 443)

Table of contents

About this book

Introduction

This book was born out of a five-years research at Sonderforschungsbe­ reich 303 by the Deutsche Forschungsgemeinschaft (DFG) at Rheinische Friedrich-Wilhelms-Universitiit Bonn and was approved as my doctoral thesis by the Rechts-und Staatswissenschaftliche Fakultiit in December 1994. It was my former colleague Wolfgang Peters who had drawn my atten­ tion to overlapping-generations models and to problems of intergenerational efficiency and distribution. The subtle connection between the latter two has been fascinating me from the very beginning: redistribution of the results of free trade can become necessary from the point of view of efficiency, although no externalities hamper the development of an economy. In spite of being a matured part of economics, neoclassical growth theory had left many questions unsolved, some of them even unrecognized by a large part of our profession. I took up the challenge to contribute to the investigation of some of these thorny problems. One of these issues is the often quoted idea of the inter generational con­ tract. Although intergenerational transfers can improve intertemporal effi­ ciency, the design of pension schemes to achieve an improvement of well-being of some generations without hurting that of any other, is not an easy task in an economy with flexible prices. Quite frequently, only interest rate and growth rate are taken into account when deciding on whether a generation wins or looses.

Keywords

efficiency equilibrium fertility fiscal policy population population growth taxation

Authors and affiliations

  • Günther Lang
    • 1
  1. 1.Faculty of EconomicsUniversity Nova of LisbonLisbonPortugal

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-48152-9
  • Copyright Information Springer-Verlag Berlin Heidelberg 1996
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-540-61603-0
  • Online ISBN 978-3-642-48152-9
  • Series Print ISSN 0075-8442
  • Buy this book on publisher's site