posted on 2017-06-06, 01:59authored byMulino, Daniel
In a two-period OLG framework, there is only one rate of population growth at which the competitive equilbrium outcome Is also the golden rule outcome. I show that this is the welfare minimizing outcome for agents. Moreover, I show that as population growth increases beyond the welfare minimizing level, agents are better off even as the economy becomes more dynamically inefficient.