Policy Reforms and Growth in Computable OLG Economies
AbstractWe build a computable general equilibrium model with overlapping generations of agents and an endogenous growth specification à la Lucas. Two main issues are addressed: (i) to what extent does endogenous growth play a significant role in the face of policy reform and (ii) are the simulation results robust to various calibrations of the production function of human capital. In this purpose, we simulate four large policy changes and compare the predictions with endogenous growth (under various parameter sets) to those with exogenous growth. If endogenous growth is important when examining the effects of education reform, it does not really matter with pension reforms and plays a minor role in the debt repayment scenario. These results are very robust to calibration.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2000027.
Date of creation: 01 Sep 2000
Date of revision:
Other versions of this item:
- Bouzahzah, Mohamed & De la Croix, David & Docquier, Frederic, 2002. "Policy reforms and growth in computable OLG economies," Journal of Economic Dynamics and Control, Elsevier, vol. 26(12), pages 2093-2113, October.
- BOUZAHZAH, Mohamed & DE LA CROIX, David & DOCQUIER, Frédéric, . "Policy reforms and growth in computable OLG economies," CORE Discussion Papers RP -1669, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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