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Title: Weak scale effects in overlapping generations economy
Authors: Sorek G.
Diwakar B.
Published in: Economics Bulletin
Abstract: We show how the two alternative saving motives - life-cycle consumption smoothing and parental bequests - determine the relation between population growth and RandD-based economic growth, i.e. the sign of the weak scale effect. We take a textbook RandD-based growth model of in finitely lived agents with no life-cycle saving motive and reanalyze it in the Overlapping Generations (OLG) framework, which incorporates both life-cycle and bequest saving motives. We decompose the effect of each saving motive on the sign of the weak scale effect and show that in the presence of both saving motives it is ambiguous in general.
Citation: Economics Bulletin (2017), 37(2): 962-969
Issue Date: 2017
Publisher: Economics Bulletin
ISSN: 15452921
Author Scopus IDs: 26535278200
Author Affiliations: Sorek, G., Economics Department Auburn University, United States
Diwakar, B., Auburn University, United States
Appears in Collections:Journal Publications [HS]

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