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
Famous quotes containing the words models and/or production:
“Today it is not the classroom nor the classics which are the repositories of models of eloquence, but the ad agencies.”
—Marshall McLuhan (1911–1980)
“Every production of an artist should be the expression of an adventure of his soul.”
—W. Somerset Maugham (1874–1965)