Long-run effects of capital market integration using OLG model

Buiter (1981) illustrates that in the OLG model, the ranking of stationary utility levels under autarky and openness, is ambiguous. We show that both countries increase their stationary utility levels only if the autarky capital-labor ratios are on opposite sides of the golden rule.

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Year of publication:	2014-08-20
Authors:	Darreau, Philippe ; Pigalle, François
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 34.2014, 3, p. 1835-1845
Publisher:	AccessEcon
Subject:	Capital market integration \| open economy \| Global Imbalances \| OLG model

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Extent:	application/pdf
Type of publication:	Article
Classification:	F4 - Macroeconomic Aspects of International Trade and Finance ; H6 - National Budget, Deficit, and Debt
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010889802