The transfer paradox describes a situation in which a transfer ofendowments between two agents results in a welfare … arbitrary number ofgoods, the transfer paradox occurs only if the price equilibrium isunstable. In this paper, we show that in … the space of welfare weights,the set of stable equilibria and the set of no-transfer paradox equilibriacoincide. As a …

-sector overlapping generations model. It is shown that a strong form of the transfer paradox-- in which the donor country experiences a … transfer paradox. The results are explained by the effects of transfers on world capital accumulation and the world interest …

) terms of trade always works in favor of a transfer paradox. The conditions under which the transfer paradox is obtained are …

-sector overlapping generations model. It is shown that a strong form of the transfer paradox-- in which the donor country experiences a … is shown that a weak form of the transfer paradox—where either the donor or recipient (but not both) experience … paradoxical welfare effects—may characterize all segments of the transition path not already characterized by the strong transfer …

Samuelson (1947) stated that a regular equilibrium exhibits the transfer paradox if and only if it is unstable. Gale … reinterpret Samuelson’s result as identifying the threshold, i.e. the minimum level of trade beyond which the transfer paradox …

) terms of trade always works in favor of a transfer paradox. The conditions under which the transfer paradox is obtained are … Walrasian stability, we demonstrate that the change in the (static) terms of trade always works in favor of a transfer paradox …. The conditions under which the transfer paradox is obtained are independent of factor intensity rankings and also whether …

functions, the existence of sunspot equilibria is equivalent to the occurrence of the transfer paradox. This equivalence enables …