01778cas a2200253 a 4500 AALejournalIMF001300 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451854893 1018-5941 BD-DhAAL BD-DhAAL Faruqee, Hamid. Life-Cycles, Dynasties, Savings : Implications for Closed and Small, Open Economies / Hamid Faruqee, Douglas Laxton. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (40 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the macroeconomic implications of life-cycle and dynastic saving behavior for closed and small, open economies. Using an extended version of Blanchard's overlapping agents model, the analytical framework nests these two competing views, treating agents as either dynastic households or disconnected generations. Calibrating the life-cycle variant using empirical age-earnings profiles, the analysis compares the long-run effects of fiscal policy shocks under both perspectives. The results quantify the implications of life-cycle considerations for the effects of deficit finance on real interest rates and the capital stock or net foreign assets. Mode of access: Internet Laxton, Douglas. IMF Working Papers; Working Paper ; No. 2000/126 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/126/001.2000.issue-126-en.xml IMF e-Library