CFDP 1262

A Stochastic Overlapping Generations Economy with Inheritance

Author(s): 

Publication Date: June 2000

Pages: 26

Abstract: 

An overlapping generations model of an exchange economy is considered, with individuals having a finite expected life-span. Conditions concerning birth, death, inheritance and bequests are fully specified. Under such conditions, the existence of stationary Markov equilibrium is established in some generality, and several explicitly solvable examples are treated in detail.

Keywords: 

Overlapping generations, inheritance, stochastic process, life span

JEL Classification Codes:  C72, C73, D80