## 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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Page 10

A

/ = 1 to It describes who consumes what for all time. A

assigns c*'s for all individuals born in all time periods. A feasible consumption ...

A

**consumption allocation**is the sequence of time t**consumption allocations**for all/ = 1 to It describes who consumes what for all time. A

**consumption allocation**assigns c*'s for all individuals born in all time periods. A feasible consumption ...

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might think of these

term for a dictator). There are N young each period and N old; so in each period

the total

might think of these

**allocations**as being determined by a social planner (a niceterm for a dictator). There are N young each period and N old; so in each period

the total

**consumption**of the young is ayN, and in each period the total ...Page 22

only one person in each generation), then the same amount of the good is

consumed (in total) each period. For each member of each generation s 1 , the

utility is 4 x 4 = 16, so each of them is made better off by this new

only one person in each generation), then the same amount of the good is

consumed (in total) each period. For each member of each generation s 1 , the

utility is 4 x 4 = 16, so each of them is made better off by this new

**consumption****allocation**...### 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 Proposition purchase quantity rate of growth 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