## Introduction to Dynamic Macroeconomic Theory: An Overlapping Generations ApproachEconomies are constantly in flux, and economists have long sought reliable means of analysing their dynamic properties. This book aims to provide a succinct and accessible exposition of modern dynamic (or intertemporal) macroeconomics. |

### From inside the book

Results 1-3 of 33

Page 99

If the change in taxes and transfer is small enough so that the after-tax

endowment point is still below the preferred consumption point, then the

will be adjusted to exactly compensate for the change in taxes and transfers. For

this result ...

If the change in taxes and transfer is small enough so that the after-tax

endowment point is still below the preferred consumption point, then the

**bequest**will be adjusted to exactly compensate for the change in taxes and transfers. For

this result ...

Page 110

The first, like Equation (4.8), gives the gross interest rate as a function of the

entire vector of

member h (for h equal to 1 to N) of generation 0 as a function of the gross interest

rate.

The first, like Equation (4.8), gives the gross interest rate as a function of the

entire vector of

**bequests**, b(0), which ... give the size of the**bequest**of eachmember h (for h equal to 1 to N) of generation 0 as a function of the gross interest

rate.

Page 111

Figure 4.6 shows the gross interest rate to gross interest rate curve (heavy line)

that we described in the preceding paragraph. The two kinks in the curve occur at

the points where the nonnegativity constraints kick in on the

Figure 4.6 shows the gross interest rate to gross interest rate curve (heavy line)

that we described in the preceding paragraph. The two kinks in the curve occur at

the points where the nonnegativity constraints kick in on the

**bequests**function.### What people are saying - Write a review

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### Contents

Describing the Environment | 5 |

Competitive Equilibrium | 32 |

Introducing a Government | 55 |

Copyright | |

10 other sections not shown

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### Common terms and phrases

45-degree line A-period bonds aggregate savings function amount arbitrage assets autarky Bailey curve bequests bliss point borrowing and lending budget line capital stock Chapter chooses competitive equilibrium Consider an economy consumption allocation consumption point consumption when old consumption when young credit controls crop endowment point equal Equation equilib equilibrium condition equilibrium price example economy exchange rate EXERCISE expected price fiat money Figure given gives government bonds government revenues gross interest rate growth rate hold indifference curve individual h inflation labor lifetime budget constraint market clearing maximize member h money creation money supply output Pareto optimal Pareto superior perfect foresight period person h pm(t present value price of land price path price sequence private borrowing production function Proposition purchase quantity rate of return reserve requirement restrictions result Ricardian equivalence seignorage solve stationary equilibrium stationary monetary equilibrium storage sumption tax-transfer scheme taxes and transfers temporary equilibrium tion utility function