How to solve two generation uility funcion on DSGE model, or if not how to solve it using other model?

[PeiPei]

Hello, I want to build a two generation utility funcation in my household part and I want to add it within other parts,such as government、factory. I wonder can DSGE do it or if it can’t which method can help to sovle two period utility function and let all parts make sense?

[jpfeifer]

You need to provide more details. Do you have two overlapping generations within an infinite horizon model? Or is it a finite horizon model with a terminal period?

[PeiPei]

Thank you for your reply. I want to have two overlapping generations within an infinite horizon model. In this DSGE model, I want to add old and young genrations, each has different constraints, besides I also want to build factory and government part in this model. But I don’t konw how to build it in DSGE, can you give me some advice or some suggested reading meaterial about this overlapping generation model in DSGE .Thanks very much.

[jpfeifer]

Have a look at

Overlapping Generations Model (OLG)

Hey, I noticed that here’s very little OLG related material. So here’s a basic 2 cohort Diamond-Samuelsson. // Basic OLG with population growth and technological growth var c c1 c2 k w r s y check1 check2; parameters beta alpha delta n x; beta = 0.4010; // 0.97^30 alpha = 1/3; delta = 0.9; n=0.1614; x=0.3478; kss = ((1+1/beta)*(1+n)/(1-alpha))^(1/(alpha-1)); wss = (1-alpha)*kss^alpha; rss = alpha*kss^(alpha-1)-delta; sss = (1+n)*kss; c1ss = sss/beta; c2ss = (1+rss)*sss; yss = kss^alpha; css …