Provide sufficient conditions on u1 and u2 such that 1


Consider the OLG model with warm glow preferences in Section 9.6, and suppose that preferences are given by u1(ci(t)) + u2(bi(t)), where u1 and u2 are strictly increasing and concave functions. The production side is the same as in the text. Characterize a dynamic equilibrium of this economy. Provide sufficient conditions on u1(.) and u2(.) such that (1) aggregate dynamics are globally stable, and (2) all individuals asymptotically tend to the same wealth level.

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Econometrics: Provide sufficient conditions on u1 and u2 such that 1
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