Golden rule optimality in stochastic OLG economies

► We examine conditional golden rule optimality (CGRO) in stochastic overlapping generations models. ► We report an anomalous situation such that CPO implies CGRO. ► Such a situation can be avoidable under strictly convex preferences. ► Under such preferences, CGRO is characterized by the dominant root, being equal to one, of an appropriate matrix. ► By adopting CGRO, we provide welfare theorems in the financial economy.