Document Type : Research Article
Authors
1 Department of Mathematics and Computer Sciences, Damghan University, Damghan, Iran
2 The University of Zurich and Swiss Finance Institute
3 Department of mathematics and computer sciences, Damghan University, Damghan, Iran
Abstract
In this paper, we address the problem of analyzing and computing all steady states of an overlapping generation (OLG) model with production and many generations. The characterization of steady states coincides with a geometrical representation of the algebraic variety of a polynomial ideal, and, in principle, one can apply computational algebraic geometry methods to solve the problem. However, it is infeasible for standard methods to solve problems with a large number of variables and parameters. Instead, we use the specific structure of the economic problem to develop a new algorithm that does not employ the usual steps for the computation of Grobner basis such as the computation of successive S-polynomial and expensive division.
Keywords
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