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Continuous-Time Overlapping Generations Models

  • Hippolyte D'Albis


    (LERNA - Economie des Ressources Naturelles - Institut national de la recherche agronomique (INRA) - CEA - UT1 - Université Toulouse 1 Capitole)

  • Emmanuelle Augeraud-Véron


    (MIA - Mathématiques, Image et Applications - Université de La Rochelle)

Age structured populations are studied in economics through overlapping generations models. These models allow for a realistic characterization of life-cycle behaviors and display intertemporal equilibrium that are not necessarily efficient. This article uses the latest developments in continuous time overlapping generations models to show the influence of the vintage structure of the population on the volatility of intertemporal prices. Permanent cycles can be found on the neighborhood of steady-states while the transitional dynamics are generically governed by short run fluctuations.

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Paper provided by HAL in its series Post-Print with number hal-00424799.

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Date of creation: 2011
Date of revision:
Publication status: Published in R. Boucekkine, N. Hritonenko and Y. Yatsenko. Optimal Control of Age-structured Population in Economy, Demography, and the Environment., Taylor and Francis, pp.45-69, 2011, Routledge Explorations in Environmental Economics
Handle: RePEc:hal:journl:hal-00424799
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