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.
Multiple equilibria, saving, overlapping generations, excess sensitivity
GUHA, Ashok S. and Guha, Brishti.
Future Targets and Multiple Equilibria. (2005). Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/864
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