An Over-Rolling Generation Model

13 Pages Posted: 19 Aug 2008 Last revised: 4 Oct 2012

See all articles by Hak Choi

Hak Choi

Chienkuo Technology University - Department of International Business; Chung-Hua Institution for Economic Research

Date Written: August 1, 2008

Abstract

This paper points out some mistakes in Samuelson’s overlapping generation (OLG) model. Instead of pursuing life-time maximum utility, this paper assumes people pursue maximum life-time profit in an over-rolling generation (ORG) model. In such model people first borrow to consume, then produce to repay the debt. When they improve and enhance the input and turn it into more valuable output, there is profit. The accumulated profit becomes capital or national wealth.

Keywords: Overlapping generation, Capital Accumulation, Profit

JEL Classification: D91, E43, J26

Suggested Citation

Choi, Hak, An Over-Rolling Generation Model (August 1, 2008). Available at SSRN: https://ssrn.com/abstract=1232580 or http://dx.doi.org/10.2139/ssrn.1232580

Hak Choi (Contact Author)

Chienkuo Technology University - Department of International Business ( email )

No.1, Chiehsou N. Road
Changhua City, 500
Taiwan
+886 91 901-4618 (Phone)

HOME PAGE: http://euntold.wordpress.com

Chung-Hua Institution for Economic Research ( email )

75, Changhsin St.
Taipei
Taiwan

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