and individuals with an infinite time horizon. Allais (1947)5 (and, later, P. Samuelson) set the first “overlapping generations model”, where individuals have a finite time horizon but overlap with other individuals living longer. Solow (1956)6
3 Shumpeter J., 1911. The Theory of Economic Development: An Iinquiry intoPprofits,Capital,Credit,Interest and the Business Cycle (original title in German) 1911. with his “Long Run Growth Model” highlights that, increasing the capital per unit of labour (a shift in the capital/labour ratio) increases labour productivity and generates growth. But factors exhibit diminishing marginal productivity. The diminishing marginal productivity should push the economy at a point where additional capital per worker would have no impact on production. The output would increase only if labour also increases. In this situation, there would be no interest