Overlapping Generations Model of Diamond

In this video, I present the basic version of the overlapping generations (OLG) model of Diamond (1965) and provide a graphical analysis of its dynamics. The slides are based on chapter 5 of Prettner and Bloom (2020). Automation and Its Macroeconomic Consequences. Theory, Evidence, and Social Impacts. For the other central macroeconomic model (the Ramsey-Cass-Koopmans model), please see    • Ramsey-Cass-Koopmans Model Part 1: Derivation      • Ramsey-Cass-Koopmans Model Part 2: Analysis   If you are interested in modelling poverty traps in an overlapping generations model, please see    • Overlapping Generations Model With a Pover...   For the effects of automation in an overlapping generations model, please see    • Overlapping Generations Model With Automation   If you are interested in macroeconomics, please see the following lecture    • Advanced Macroeconomics