Future Targets and Multiple Equilibria

Author: 
Ashok S. Guha
Brishti Guha
Description: 
Paper No. 21-2005
JEL codes: 
Organisation: 
Abstract: 
Multiple Pareto-rankable equilibria may obtain in an overlapping generations model where consumers save to reach a fixed target. Existence and uniqueness conditions are discussed. The model displays excess consumption sensitivity to current income and perfect old-age insurance.