This note presents the simplest overlapping generations model. The model is due
to Diamond (1965), who built on earlier work by Samuelson (1958).
Overlapping generations models capture the fact that individuals do not live
forever, but die at some point and thus have finite life-cycles. Overlapping generations
models are especially useful for analysing the macro-economic effects of
different pension systems.
Since the Consolidated Appropriations Act of 2012 (P.L. 112-74) did not fully fund the cap
adjustment for 2012, the President's Budget proposes to provide the additional $140 million in
funding allowed by the cap adjustment, consistent with section 251(b)(2)(B) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended. This proposal provides an
extra $46 million, the SSI share of the additional $140 million in funding allowed by the cap
adjustment for program integrity.
Monitoring and evaluation. Finally, in order to track progress
and enhance learning and quality, an effective system of monitoring
and evaluation that includes assessment of on-the-ground results is
under development. Progress in implementing the strategy will be
The estimated incremental costs of implementing the strategy
will be about $2 million in the current fiscal year, about $3 million
per year in the three subsequent years, and approximately $2.5 mil-
lion per year thereafter. Corporate incentive funding of $0.
Hence, all else equal, one could expect global retail banks to have a preference for
subsidiarization, while global universal banks for branching.
The subsidiary structure may
work well for retail banks, as it may benefit from a local management team that is fully
accountable for the performance of an affiliate focused on local retail operations. There is a
benefit to a management team that has a deep understanding of the local market and a greater
ability to obtain local funding.
The Clean Water and Drinking Water State Revolving Funds are provided $2 billion in FY 2013.
As part of the Administration’s long-term strategy, the EPA is implementing a Sustainable Water
Infrastructure Policy that focuses on working with states and communities to enhance technical,
managerial and financial capacity. Important to the enhanced technical capacity will be
alternatives analyses to expand "green infrastructure" options and their multiple benefits.
So, even if it is desirable that the postal bank should attract funds in a confidence crisis,
the systemic benefits will not be felt unless the “exit” side of the system is designed to
assure prompt recycling. And, even if such recycling is sufficiently automatic to keep the
postal bank’s role on the lending side completely neutral, distortions can still result unless
prices are set to reflect fully the actual costs and risks of the products offered.