{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2024,1,24]],"date-time":"2024-01-24T00:35:17Z","timestamp":1706056517460},"reference-count":25,"publisher":"The Econometric Society","issue":"1","license":[{"start":{"date-parts":[[2024,1,1]],"date-time":"2024-01-01T00:00:00Z","timestamp":1704067200000},"content-version":"unspecified","delay-in-days":0,"URL":"http:\/\/creativecommons.org\/licenses\/by-nc\/4.0\/"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["QE"],"abstract":"This paper reconsiders the question of testing for the presence of Pareto suboptimal capital overaccumulation in overlapping generations economies. The paper allows generation\u2010specific technology shocks to evolve over time according to a stationary Markov chain, and assumes that an econometrician observes a finite sample of aggregate quantities. In this setting, any statistical test of the null hypothesis of capital overaccumulation with size less than one also has zero power against the alternative hypothesis of a dynamically efficient steady state. This result means that the standard assessments of capital overaccumulation based on US aggregate quantity data should be viewed as inconclusive.<\/jats:p>","DOI":"10.3982\/qe2413","type":"journal-article","created":{"date-parts":[[2024,1,23]],"date-time":"2024-01-23T10:37:05Z","timestamp":1706006225000},"page":"89-114","source":"Crossref","is-referenced-by-count":1,"title":["Difficulties in testing for capital overaccumulation"],"prefix":"10.3982","volume":"15","author":[{"given":"Narayana R.","family":"Kocherlakota","sequence":"first","affiliation":[{"name":"Department of Economics, University of Rochester"},{"name":"NBER"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"2359","published-online":{"date-parts":[[2024]]},"reference":[{"key":"quan200309-bib-0001","doi-asserted-by":"crossref","first-page":"1","DOI":"10.2307\/2297746","volume":"56","author":"Abel","year":"1989","journal-title":"Review of Economic Studies"},{"key":"quan200309-bib-0002","doi-asserted-by":"crossref","first-page":"1115","DOI":"10.1214\/aoms\/1177728077","volume":"25","author":"Bahadur","year":"1956","journal-title":"Annals of Mathematical Statistics"},{"key":"quan200309-bib-0003","doi-asserted-by":"crossref","first-page":"572","DOI":"10.1093\/restud\/rdac029","volume":"90","author":"Ball","year":"2023","journal-title":"Review of Economic Studies"},{"key":"quan200309-bib-0004","first-page":"1","volume":"4","author":"Barbie","year":"2004","journal-title":"Topics in Macroeconomics"},{"key":"quan200309-bib-0005","doi-asserted-by":"crossref","first-page":"568","DOI":"10.1016\/j.jet.2007.01.012","volume":"137","author":"Barbie","year":"2007","journal-title":"Journal of Economic Theory"},{"key":"quan200309-bib-0006","doi-asserted-by":"crossref","first-page":"117","DOI":"10.1016\/0165-1765(91)90157-G","volume":"35","author":"Bertocchi","year":"1991","journal-title":"Economic Letters"},{"key":"quan200309-bib-0007","doi-asserted-by":"crossref","first-page":"1197","DOI":"10.1257\/aer.109.4.1197","volume":"109","author":"Blanchard","year":"2019","journal-title":"American Economic Review"},{"key":"quan200309-bib-0008","doi-asserted-by":"crossref","first-page":"1121","DOI":"10.3982\/TE2146","volume":"12","author":"Bloise","year":"2017","journal-title":"Theoretical Economics"},{"key":"quan200309-bib-0009","doi-asserted-by":"crossref","unstructured":"Bloise, Gaetano and Pietro Reichlin (2023), \u201cLow safe interest rates: A case for dynamic inefficiency?\u201d SSRN 4244152.","DOI":"10.2139\/ssrn.4244152"},{"key":"quan200309-bib-0010","doi-asserted-by":"crossref","first-page":"2535","DOI":"10.3982\/ECTA10851","volume":"81","author":"Canay","year":"2013","journal-title":"Econometrica"},{"key":"quan200309-bib-0011","doi-asserted-by":"crossref","first-page":"200","DOI":"10.1016\/0022-0531(72)90149-4","volume":"4","author":"Cass","year":"1972","journal-title":"Journal of Economic Theory"},{"key":"quan200309-bib-0012","first-page":"73","volume":"9","author":"Chen","year":"2017","journal-title":"American Economic Journal: Macroeconomics"},{"key":"quan200309-bib-0013","doi-asserted-by":"crossref","first-page":"527","DOI":"10.1111\/1468-0262.00035","volume":"67","author":"Demange","year":"1999","journal-title":"Econometrica"},{"key":"quan200309-bib-0014","first-page":"1126","volume":"55","author":"Diamond","year":"1965","journal-title":"American Economic Review"},{"key":"quan200309-bib-0015","doi-asserted-by":"crossref","first-page":"1365","DOI":"10.2307\/2171740","volume":"65","author":"Dufour","year":"1997","journal-title":"Econometrica"},{"key":"quan200309-bib-0016","unstructured":"Geerolf, Francois (2018), \u201cReassessing dynamic efficiency.\u201d UCLA working paper."},{"key":"quan200309-bib-0017","doi-asserted-by":"crossref","first-page":"177","DOI":"10.3982\/ECTA6761","volume":"77","author":"Hansen","year":"2009","journal-title":"Econometrica"},{"key":"quan200309-bib-0018","doi-asserted-by":"crossref","first-page":"1629","DOI":"10.3982\/ECTA21090","volume":"91","author":"Kocherlakota","year":"2023","journal-title":"Econometrica"},{"key":"quan200309-bib-0019","doi-asserted-by":"crossref","unstructured":"Kocherlakota, Narayana R. 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