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Myopic and Perfect Foresight in the OLG Model

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Author Info

  • Michel P.
  • de la Croix, D.

Abstract

We compare the dunamics under myopic foresight and under perfect foresight in an overlapping generations model with capital accumulation and two-period lived individuals. When the rational dynamics are defined and the myopic dynamics are monotonic, the study of myopic foresight allows to characterize the dynamics under perfect foresight.

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Bibliographic Info

Paper provided by Universite Aix-Marseille III in its series G.R.E.Q.A.M. with number 99a35.

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Length: 7 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:aixmeq:99a35

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Keywords: BUSINESS CYCLES ; ECONOMIC GROWTH ; FORECASTS;

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  1. Galor, Oded & Ryder, Harl E., 1989. "Existence, uniqueness, and stability of equilibrium in an overlapping-generations model with productive capital," Journal of Economic Theory, Elsevier, vol. 49(2), pages 360-375, December.
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