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OLG Part 2 | OLG Equilibrium SOLVED without Government | Overlapping Generations Model:
In this video on the Diamond Overlapping Generations Model I talk about the Equilibrium of the Diamond OLG model without government. I solve for optimal consumption in each period for all generations and optimal assets. I also talk about the interest rate in the OLG model and why it makes sense.
Timestamps:
0:00 - Goals of the video
0:34 - Review of OLG Set-up
2:50 - No borrowing in OG OLG Explained
4:57 - Solving Optimal Consumption
5:39 - Solving Optimal Interest Rate
7:25 - Interpreting Optimal Interest Rate
10:08 - Recap of Equilibrium / Preview of Part 3