Overlapping Generations Model
The Overlapping Generations Model, pioneered by Paul Samuelson in 1958 and extended by Peter Diamond in 1965, is a macroeconomic framework where successive generations of individuals live for finite periods and coexist at any point in time. It addresses how consumption, savings, and capital accumulation evolve across generations and how monetary and fiscal policy affects intergenerational distribution.
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- Diamond, P. A. (1965). National Debt in a Neoclassical Growth Model. American Economic Review, 55(5), 1126–1150. · URL
- Samuelson, P. A. (1958). An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money. Journal of Political Economy, 66(6), 467–482. · DOI 10.1086/258100
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