OLG Models With Production
A OLG model with an aggregate neoclassical production was constructed by Peter Diamond. A two-sector OLG model was developed by Oded Galor.
Unlike the Ramsey growth model the steady state level of capital need not be unique. Moreover, as demonstrated by Diamond (1965), the steady-state level of the capital labor ratio need not be efficient which is termed as "dynamic inefficiency".
Read more about this topic: Overlapping Generations Model
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