An Overlapping Generations Computable General Equilibrium (OLG-CGE) Model with Age-variable Rate of Time Preference

Patrick Georges, Katerina Lisenkova, Marcel Merette, Qi Zhang

Research output: Book/ReportCommissioned report

Abstract

It is generally accepted that people prefer to receive reward earlier rather than later. A positive rate of time preference is routinely used in economic models of intertemporal choice, for example OLG-CGE models. Calibrating an OLG-CGE model is challenging because age-profile data is usually not available. For example, researchers typically have no data on consumption by age group. The conventional way to proceed is to impose a constant rate of time preference, which implies smooth age profile for consumption.
Original languageEnglish
Place of PublicationLondon
Number of pages23
Publication statusPublished - 3 Mar 2016

Publication series

NameNIESR Discussion Papers
Volume458

Keywords

  • consumption age
  • savings
  • capital

Fingerprint

Dive into the research topics of 'An Overlapping Generations Computable General Equilibrium (OLG-CGE) Model with Age-variable Rate of Time Preference'. Together they form a unique fingerprint.

Cite this