Seminar: Thorsten Pampel, Bielefeld University, Germany.

Title: Human capital, public pensions and credit constraints in a closed economy.

Abstract: We analyze the dynamics of a closed economy with overlapping generations, human capital accumulation, a public pension system and credit constraints. Agents are heterogenous in their ability to learn. Since we analyze a closed economy the real interest rate is endogenous and the marginal return on working might exceed the marginal return on education. Depending on parameters we observe stationary solutions with and without human capital accumulation as well

as periodic solutions, where phases with human capital accumulation change with phases without.