Title: International Capital Movements In the Solow and Overlapping Generations Growth Models*
Abstract: Abstract This paper examines capital movements in the overlapping generations and Solow models. For the overlapping generations model, a simple compensation scheme is developed to show how the gaining generation(s) can always compensate the losing generation(s) and still gain in the move from autarky to free capital mobility. Moreover, unlike the Solow model, the move to an open economy for the overlapping generations model has a tendency to reduce the assets held by the capital‐exporting country.
Publication Year: 1993
Publication Date: 1993-06-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 8
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