Myopic and Perfect Foresight in the OLG Model.
(1999)
Files
9914.pdf
Open Access - Adobe PDF
- 1.79 MB
Details
- Authors
- Abstract
- We compare the dynamics 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. The study of myopic dynamics also allows to obtain a condition of uniqueness of the steady state that bears only on the second order derivatives of the utility and production functions.
- Affiliations
Citations
Michel, P., & De la Croix, D. (1999). Myopic and Perfect Foresight in the OLG Model. (ECON Working Papers 1999/14). https://hdl.handle.net/2078.5/130047