Welfare, Population Growth and Dynamic Inefficiency in an OLG Framework

2017-06-06T01:59:10Z (GMT) by Mulino, Daniel
In a two-period OLG framework, there is only one rate of population growth at which the competitive equilbrium outcome Is also the golden rule outcome. I show that this is the welfare minimizing outcome for agents. Moreover, I show that as population growth increases beyond the welfare minimizing level, agents are better off even as the economy becomes more dynamically inefficient.