On a simple model of overlapping generations with human capital

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"This paper presents a simple model with overlapping-generations where finite-lived individuals accumulate human capital not taking the by-productive effect on future generations into account. In such model, the phenomenon of indeterminacy of equilibrium appears. Such indeterminancy does not occur in similar model presented in Hashimoto (1998). The substantial difference between the two models is whether or not individuals' behavior is altruistic. Non-altruism of individuals in overlapping-generations economy implies the lack of boundary condition in appropriate set of optimal conditions. Since it is well known that appropriately defined boundary-value problems have unique solutions, a shortage of boundary conditions implies indetermancy of equilibrium. From this viewpoint we may say that the source of indeterminacy is finite lifetimes of non-altruistic individuals."