OLG Models With Production
A OLG model with an aggregate neoclassical production was constructed by Peter Diamond. A two-sector OLG model was developed by Oded Galor.
Unlike the Ramsey growth model the steady state level of capital need not be unique. Moreover, as demonstrated by Diamond (1965), the steady-state level of the capital labor ratio need not be efficient which is termed as "dynamic inefficiency".
Read more about this topic: Overlapping Generations Model
Famous quotes containing the words models and/or production:
“French rhetorical models are too narrow for the English tradition. Most pernicious of French imports is the notion that there is no person behind a text. Is there anything more affected, aggressive, and relentlessly concrete than a Parisan intellectual behind his/her turgid text? The Parisian is a provincial when he pretends to speak for the universe.”
—Camille Paglia (b. 1947)
“The myth of unlimited production brings war in its train as inevitably as clouds announce a storm.”
—Albert Camus (1913–1960)