Simple OLG Model Explained With Numerical Example in MATLAB

Josheski et al, 2018: 04 (04)

15 Pages Posted: 11 Dec 2018

See all articles by Dushko Josheski

Dushko Josheski

University Goce Delcev

Aneta Risteska Jankuloska

Faculty of Economics-Prilep

Tatjana Spaseska

Faculty of Economics-Prilep

Date Written: November 5, 2018

Abstract

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 OLG model. 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.

Keywords: OLG Models, DGE Models, MATLAB Codes for OLG, Simplest OLG Model, Poverty Traps and Multiple Equilibria OLG Models

JEL Classification: A00, E00, H2

Suggested Citation

Josheski, Dushko and Risteska Jankuloska, Aneta and Spaseska, Tatjana, Simple OLG Model Explained With Numerical Example in MATLAB (November 5, 2018). Josheski et al, 2018: 04 (04) , Available at SSRN: https://ssrn.com/abstract=3279024

Dushko Josheski (Contact Author)

University Goce Delcev ( email )

Stip
Macedonia
+389 32 550 000 (Phone)
+389 32 390 700 (Fax)

HOME PAGE: http://www.ugd.edu.mk/

Aneta Risteska Jankuloska

Faculty of Economics-Prilep ( email )

Prilep
Macedonia

Tatjana Spaseska

Faculty of Economics-Prilep ( email )

Prilep
Macedonia

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