Modeling overlapping generations in a complementarity format

This paper provides an introduction to numerical simulation of overlapping generations models with perfect foresight and finite lifetimes. The exposition presents the fundamental characteristics of this class of problems, and GAMS programs illustrate how models can be formulated in applied research using the complementarity framework. Issues addressed in the paper include how to calibrate to baseyear data, and how to represent international trade, bequests, government tax and expenditure policies, and a labor/leisure choice with endogenous retirement. (C) 2003 Elsevier B.V. All rights reserved.