Analyzing how societies divide their finite resources between current consumption and future capital investments.
Azariadis is widely recognized for his extensive work on Overlapping Generations (OLG) models. Originally conceptualized by Paul Samuelson and Peter Diamond, the OLG framework acknowledges that an economy consists of different generations living simultaneously (e.g., the young working class and the old retired class). Azariadis used this framework to explore:
Having established how an economy grows, Azariadis then turns to the powerful and often controversial role of the government. This part is a deep dive into fiscal policy within an intertemporal setting.
