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Intertemporal equilibrium and the transfor paradox

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Author Info

  • GALOR, O.
  • POLEMARCHAKIS, H.M.

Abstract

The transfer paradox may occur in a world with only two countri es ata dynamically stable intertemporal competitive equilibrium. In a framework of overlapping generations with production and investment, a transfer of income may immiserize the recipient while enriching thedonor. Away from the golden ru le, a transfer may result in a Paretoimprovement. Copyright 1987 by The Review of Economic Studies Limited.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1984014.

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Date of creation: 01 Jan 1984
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Handle: RePEc:cor:louvco:1984014

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