QUASI-LINEAR UTILITY FUNCTIONS AND THE DYNAMICS OF PURE EXCHANGE OVERLAPPING GENERATIONS MODELS

This paper considers the dynamics of pure exchange OLG models with stationary population (each agent living for two periods), tastes and endowments, homogeneous agents and well behaved preferences. It is shown that any kind of dynamics that can emerge from this class of models can be generated by a subclass of models where preferences are described by quasi-linear utility functions.