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Diamond Model in Macro Economics by Maimoona Ghani is a document available to read on EtoBox.
What is Diamond Model in Macro Economics about?
The document summarizes the Diamond overlapping-generations model. It presents the key assumptions of the model including that individuals live for two periods, work and consume in the first period, and consume savings in the second period. It describes household behavior in maximizing utility subject to budget constraints. The dynamics of the model are discussed, showing how the capital stock evolves over time. With logarithmic utility and Cobb-Douglas production, there is a unique equilibrium capital stoc
- Author
- Maimoona Ghani
- Language
- EN