Steady state equilibria with saving for retirement in a continuous time overlapping generations model (Q1080351)

This article presents some simple stationary continuous time growth models with overlapping generations. Two behaviour rules for saving are considered: (1) a pension scheme where working consumers pay a uniform premium to a pension fund and receive a uniform pension after retirement and (2) the familiar life cycle model of individual optimization where consumers (dis)save during their active life and dissave during retirement. These saving rules are introduced in economies with and without productive capital. Steady state equilibria of these economies are studied and some discussion is given of the institutional setup required by them.