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.
LanguageEnglish
Place of PublicationLondon
Number of pages23
Publication statusPublished - 3 Mar 2016

Publication series

NameNIESR Discussion Papers
Volume458

Fingerprint

Overlapping generations
Computable general equilibrium model
Time preference
Age groups
Intertemporal choice
Reward

Keywords

  • consumption age
  • savings
  • capital

Cite this

Georges, P., Lisenkova, K., Merette, M., & Zhang, Q. (2016). An Overlapping Generations Computable General Equilibrium (OLG-CGE) Model with Age-variable Rate of Time Preference. (NIESR Discussion Papers; Vol. 458). London.
Georges, Patrick ; Lisenkova, Katerina ; Merette, Marcel ; Zhang, Qi. / An Overlapping Generations Computable General Equilibrium (OLG-CGE) Model with Age-variable Rate of Time Preference. London, 2016. 23 p. (NIESR Discussion Papers).
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Georges, P, Lisenkova, K, Merette, M & Zhang, Q 2016, An Overlapping Generations Computable General Equilibrium (OLG-CGE) Model with Age-variable Rate of Time Preference. NIESR Discussion Papers, vol. 458, London.

An Overlapping Generations Computable General Equilibrium (OLG-CGE) Model with Age-variable Rate of Time Preference. / Georges, Patrick; Lisenkova, Katerina; Merette, Marcel; Zhang, Qi.

London, 2016. 23 p. (NIESR Discussion Papers; Vol. 458).

Research output: Book/ReportCommissioned report

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KW - consumption age

KW - savings

KW - capital

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M3 - Commissioned report

T3 - NIESR Discussion Papers

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

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Georges P, Lisenkova K, Merette M, Zhang Q. An Overlapping Generations Computable General Equilibrium (OLG-CGE) Model with Age-variable Rate of Time Preference. London, 2016. 23 p. (NIESR Discussion Papers).