This paper investigates optimal monetary policy in an overlapping-generations model with endogenous growth fueled by the accumulation of human capital and under a cash-in-advance constraint. We consider the case where the government finances public education fully by seigniorage. Three main...

This paper examines the transfer problem between two countries when a donor exhibits altruistic utility toward a recipient in a one-sector overlapping generations model. We demonstrate that if the donor has a larger marginal propensity to save than the recipient, the donor's altruism never...

It is shown that in an overlapping generations model, a strong transfer paradox occurs through permanent transfer in a dynamically efficient region because of international capital mobility. A graphical explanation is also provided to show how the strong paradox arises.

This paper, incorporating public goods into a two-country Diamond overlapping generations model, shows the existence of a transfer paradox. Governments supply public goods, in addition to imposing a tax on workers and issuing government bonds. In the short-run, only a weak paradox can occur, but...

It is shown that in an overlapping generations model, a strong transfer paradox occurs through permanent transfer in a dynamically efficient region because of international capital mobility. A graphical explanation is also provided to show how the strong paradox arises.