If we do not take the model literally (for example, that people hold on to money over say thirty years (approximately 1/2 of a life cycle)), what more fundamental forces of economic exchange in reality are we trying to capture with this OLG set-up?

If we do not take the model literally (for example, that people hold on to money over say thirty years (approximately 1/2 of a life cycle)), what more fundamental forces of economic exchange in reality are we trying to capture with this OLG set-up?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If we do not take the model literally (for example, that people hold on to money
over say thirty years (approximately 1/2 of a life cycle)), what more fundamental
forces of economic exchange in reality are we trying to capture with this OLG
set-up?

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