Can this economy generate overaccumulation

Reference no: EM131139727

Consider again the canonical OLG model with log preferences and a Cobb-Douglas production function, but assume that individuals now work in both periods of their lives.

(a) Define a competitive equilibrium and the steady-state equilibrium.

(b) Characterize the steady-state equilibrium and the transitional dynamics in this economy.

Reference no: EM131139727

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