OLG

OLG, or Overlapping Generations model, is an economic framework used to analyze how different generations—such as young, working-age, and retired individuals—interact with each other over time. It examines how decisions about saving, investing, and how government policies like pensions and taxes impact economic stability and growth across multiple generations. Essentially, the OLG model helps understand the long-term effects of policies and demographic changes on an economy, highlighting the relationships between current and future generations’ welfare and resource distribution.