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| Philippe Darreau and François Pigalle |
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| ''Long-run effects of capital market integration using OLG model'' |
| ( 2014, Vol. 34 No.3 ) |
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| 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. |
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| Keywords: Capital market integration, open economy, Global Imbalances, OLG model. |
JEL: F4 - Macroeconomic Aspects of International Trade and Finance: General
H6 - National Budget, Deficit, and Debt: General |
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| Manuscript Received : Apr 09 2014 | | Manuscript Accepted : Aug 20 2014 |
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