The 800 pound gorilla within the room of macroeconomics is the question of why the overlapping generations model didn’t transform the central workhorse model for macroeconomics. Introduced in 1958 by Paul Samuelson, the model postulates an infinite choice of finite-lived families. That is in stark contrast to the more dominant neoclassical growth model, which is in line with the assumption that real economies are populated by a finite choice of dynastic families. In spite of the greater realism of the former model and the inherent implausibility of the assumptions underlying the expansion model, the expansion model has transform dominant. The authors here explore the co-evolution of the 2 models to make clear why this happened, spanning all the post-WWII era.
Overlapping Generations: Methods, Models and Morphology (International Symposia in Economic Theory and Econometrics Book 32)
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