PolicyEngine Macro
model 06 — overlapping generations · psl-og · UK · local
Model long-run behavioural change.
Estimate how reforms affect work, saving, investment, and public finances over decades, for the UK.
An overlapping-generations model for PolicyEngine reform scoring
Every quantity in the calibration table except the capital–output ratio is a calibration input, so a small deviation on it is arithmetic, not evidence: depreciation (δ = 0.065), potential growth (1.1%/yr) and the 95% debt-to-GDP target are imposed and cannot disagree with the official aggregates, and the discount factor β = 0.965 is fixed, not estimated (estimate_beta=False), so the model publishes no achieved saving ratio to compare against the ONS 8.9%. The one substantive gap is the labour share: the retained OG-Core γ = 0.35 implies 65% against an ONS labour share near 59.5%. The genuinely over-identifying checks — the capital–output ratio and the steady-state interest rate — have no published reconciliation yet. Validation →
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Cite this work
Ahmadi, Vahid (2026). “An overlapping-generations model for PolicyEngine reform scoring.” PolicyEngine Macro working paper. https://policyengine-macro.vercel.app/papers/psl-og
@techreport{policyengine2026pslog,
title = {An overlapping-generations model for PolicyEngine reform scoring},
author = {Ahmadi, Vahid},
year = {2026},
institution = {PolicyEngine},
url = {https://policyengine-macro.vercel.app/papers/psl-og},
note = {PolicyEngine Macro working paper}
}The underlying model is the Policy Simulation Library’s OG-Core, deployed through its OG-UK calibration; please also credit OG-Core as the source model. No DOI is assigned. For an exact version stamp, cite the git commit of the artifact you used from github.com/PolicyEngine/macro.