Long-run effects of capital market integration using OLG model

Philippe Darreau (1) , François Pigalle (1)

1 LAPE - Laboratoire d'Analyse et de Prospective Economique

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.

Domaines: Économie et finance quantitative [q-fin]

Philippe Darreau, François Pigalle. Long-run effects of capital market integration using OLG model. Economics Bulletin, 2014, 34, pp.1835 - 1845. ⟨hal-01076341⟩