Simple OLG Model Explained With Numerical Example in MATLAB

Josheski, Dushko and Risteska Jankuloska, Aneta and Spaseska, Tatjana (2018) Simple OLG Model Explained With Numerical Example in MATLAB. Balkan and Near Eastern Journal of Social Sciences, 4 (4). pp. 48-62. ISSN 2149-9314

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In this paper it is been made an attempt to map the global OLG models and afterwards to draw phase diagrams for the baseline OLG models, namely by simulating the Diamond (1965) capital accumulation simple OLGmodel. First it is discussed the issue of optimality in OLG models, then the general framework of the models is being mapped, with the issue of overaccumulation in OLG models. In the next section this paper presents dynamic general equilibrium analysis of an overlapping generations models in which each individual lives in two periods lifecycle. This represents the simplest of OLG models. An overlapping generations model is an applied DGE model for which the lifecycle models are applied. In the applied part benchmark models has been compared to, model with parameters that generate poverty traps and multiple equilibria.

Item Type: Article
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Tourism and Business Logistics
Depositing User: Dusko Josevski
Date Deposited: 20 Nov 2018 13:09
Last Modified: 20 Nov 2018 13:09

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