## 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 83

Page 106

denotes the utility of a young person as a function of the interest rate and the

bequest. Each member of generation 0 is choosing a utility-maximizing bequest.

The

section; ...

denotes the utility of a young person as a function of the interest rate and the

bequest. Each member of generation 0 is choosing a utility-maximizing bequest.

The

**utility function**that is maximized is the same as the one in the precedingsection; ...

Page 113

But the utility of person h of generation 1 depends on consumption when young

and when old and on the utility of member h of generation 2. The

person h of generation 1 is written as u{ = Ģi(ci(l),ci(2),u|), (4.11) so the utility ...

But the utility of person h of generation 1 depends on consumption when young

and when old and on the utility of member h of generation 2. The

**utility function**ofperson h of generation 1 is written as u{ = Ģi(ci(l),ci(2),u|), (4.11) so the utility ...

Page 192

It is possible to eat and drink too much at some holiday feast and go beyond the

point of (at least long-term) maximum utility. The minus signs in the

say that the further one is from the bliss point [that is, the larger are (c' - b') for i ...

It is possible to eat and drink too much at some holiday feast and go beyond the

point of (at least long-term) maximum utility. The minus signs in the

**utility function**say that the further one is from the bliss point [that is, the larger are (c' - b') for i ...

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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