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A Neo‐Ricardian Trade Model with Overlapping Generations

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  • TRAN NAM BINH

Abstract

This paper develops and examines a discrete‐time two‐by‐two‐by‐two barter trading world which incorporates populations. composed of overlapping, life‐cycle‐maximizing generations; each provides an economically distinguishable factor of production. It is shown that free trade without compensation can be Pareto inferior to autarky for one country. Conditions for uncompensated free trade to take place under a majority voting system are derived. The model permits intergenerational borrowing and lending to take place domestically but not internationally.

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  • Tran Nam Binh, 1985. "A Neo‐Ricardian Trade Model with Overlapping Generations," The Economic Record, The Economic Society of Australia, vol. 61(4), pages 707-718, December.
    • Handle: RePEc:bla:ecorec:v:61:y:1985:i:4:p:707-718
    DOI: 10.1111/j.1475-4932.1985.tb02027.x
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