This paper studies the welfare implications of temporary foreign aid in the context of a simple two-country model of trade. In addition to its usual effects, a transfer of income in one period is assumed to influence the pattern of consumption of the recipient country in the following period....

This paper examines the effects of a transfer on the intertemporal terms of trade in the context of a simple two-country, two-period model. When intertemporal trade occurs because the two economies have different rates of time preference, a transfer entails an improvement in the terms of trade...

Immigrants assimilate in various dimensions at different rates. Moreover, in each of these dimensions they assimilate at rates that may differ from those of their children. The purpose of this paper is to examine how the pace of assimilation of immigrants in various dimensions affects the rate...

This paper studies the welfare implications of temporary foreign aid in the context of a simple two-country model of trade. In addition to its usual effects, a transfer of income in one period is assumed to influence the preferences of the recipient country in the following period. The implied...

This paper develops a two-period, two-country model of trade in exhaustible resources. It investigates the role of intertemporal consumption substitution in determining whether international asymmet ries in terms of relative resource endowments or rates of time prefer ence have a greater...

An economy's optimal response to temporary and anticipated future changes in government spending is examined in a two-country model which highlights to role of intertemporal consumption substitution (ICS). The qualitative effects of the two countries coordinating their fiscal policy on each...

This paper considers the effects of an increase in the foreign interest rate on a small open economy with indexed wages and sticky prices. It is shown that currency market interventions helps reduce fluctuations in inflation and unemployment, as well as the exchange rate. Complete insulation,...

This paper examines the relationship between factor endowments and the pattern of trade when one of the factors is an exhaustible resource. Differences in the rate of time preference between countries determine the direction of trade, however, the length of the period over which each country...

This paper deals with the role of services in an open economy in the context of the Heckscher-Ohlin trade model. The analysis focuses on services associated with maintenance of durable goods. Assuming services are labour-intensive, we show the type of durable demanded in relatively...