An Over-Rolling Generation Model
13 Pages Posted: 19 Aug 2008 Last revised: 4 Oct 2012
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: 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
Do you have negative results from your research you’d like to share?
Recommended Papers
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.