The paradoxes of Lucas and Romer relate to the theoretical coherence of the international differences in productivity of the factors of production. To solve these paradoxes, the assumption of externality of the physical capital seems better than the assumption of externality of the human capital...

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

Whether public debt is internal or external, the burden is equivalent in the OLG model. This equivalence holds, regardless of whether the definition of burden reflects Modigliani's view or Lerner's perspective. It results from the assumption of perfect substitutability between public debt and...

Capital (physical and human) doesn't flow from rich to poor countries. We show that in order to solve these twin paradoxes, assumption of externality of physical capital is better than assumption of externality of human capital

Ce chapitre étudie le problème de la dette publique en utilisant les modèles OLG et RA. La section 1 étudie la dette publique dans le modèle RA et établit l'équivalence Ricardienne. La section 2 étudie la dette publique dans le modèle OLG et montre l'effet d'éviction du capital et le...

Barro's model is an AK model, and there cannot be dynamic ineffciency since the social yield of the capital is higher than the growth rate. But it may be that the private yield and thus the interest rate are lower than the growth rate. One can thus have a Ponzi game and the government can allow...