## 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. |

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Results 1-3 of 85

Page 30

Allocation D

1 , and increased consumption to the old of time 1 (generation 0). Consumption

allocations D and B are noncomparable, because at D the old of period 1 are ...

Allocation D

**gives**the same level of utility as allocation C for all generations t, t s1 , and increased consumption to the old of time 1 (generation 0). Consumption

allocations D and B are noncomparable, because at D the old of period 1 are ...

Page 145

though things other than what we normally think of as land have these kinds of

properties. There is a certain fixed amount of it, denoted A (measured in hectares,

acres, or whatever is the locally popular unit of measure). The A units of land

...

though things other than what we normally think of as land have these kinds of

properties. There is a certain fixed amount of it, denoted A (measured in hectares,

acres, or whatever is the locally popular unit of measure). The A units of land

**give**...

Page 362

Solving for rb

rm + — - .4). \ 4rm / The above two equations can be solved analytically. Setting

the right sides of these two equations equal to each other, which we can do since

...

Solving for rb

**gives**us the equations rb =.8 + 1.667(1 - r»)(l - -L), and rb = 1.190(rm + — - .4). \ 4rm / The above two equations can be solved analytically. Setting

the right sides of these two equations equal to each other, which we can do since

...

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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