Journal article

An integral equation representation for overlapping generations in continuous time

Chris Edmond

JOURNAL OF ECONOMIC THEORY | ACADEMIC PRESS INC ELSEVIER SCIENCE | Published : 2008

Abstract

This paper develops a method for solving for the dynamic general equilibrium of a deterministic continuous time overlapping generations model with a finite-horizon life-cycle. The model has isoelastic preferences and allows for general assumptions about individual endowments and demographics. Solving for an equilibrium reduces to solving a nonlinear integral equation. In the special case of log utility, the integral equation is linear and global approximations to a solution are easily computed with linear algebra. © 2008 Elsevier Inc. All rights reserved.

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