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overlapping generations model
An overlapping generations model, abbreviated to OLG model, is a type of representative agent economic model in which agents live a finite length of time long enough to overlap with at least one period of another agent's life. As it models explicitly the different periods of life, - such as schooling, working or retirement periods --, it is the natural framework to study the allocation of resources
across the different generations.
== History ==
The concept of an OLG model was inspired by Irving Fisher's monograph ''The Theory of Interest''.〔:〕 Notable improvements were published by Maurice Allais in 1947, Paul Samuelson in 1958, and Peter Diamond in 1965. Books devoted to the use of the OLG model include Azariadis' Intertemporal Macroeconomics and de la Croix and Michel's Theory of Economic Growth.
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