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Time preference and capital mobility in an OLG model with land

Author

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  • Jean-Pierre Vidal

    (C.R.E.P.P., University of Liège, Belgium, and C.E.M.E., University of Paris I, U.R.A. C.N.R.S. D0924, F-75231 Paris Cedex 05, France)

  • Philippe Michel

    (C.O.R.E., I.U.F. and University of Aix-Marseille II, France)

  • Bertrand Crettez

    (C.R.E.S.E., University of Franche-Comté and C.E.M.E., University of Paris I, U.R.A. C.N.R.S. D0924, 12 place du Panthéon, F-75231 Paris Cedex 05, France)

Abstract

This paper examines the pattern of capital mobility in a two-country overlapping generations world in which production uses three inputs: capital, labor and land. The steady-state welfare consequences of opening countries to financial capital or labor mobility are then compared. In particular, it is shown that capital mobility does not equalize standards of living across countries. To achieve this goal, one has to rely on labor mobility.

Suggested Citation

  • Jean-Pierre Vidal & Philippe Michel & Bertrand Crettez, 1998. "Time preference and capital mobility in an OLG model with land," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(1), pages 149-158.
    • Handle: RePEc:spr:jopoec:v:11:y:1998:i:1:p:149-158
    Note: Received: 8 January 1996 / Accepted: 6 June 1996
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    References listed on IDEAS

    as
    1. Buiter, Willem H, 1981. "Time Preference and International Lending and Borrowing in an Overlapping-Generations Model," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 769-797, August.
    2. Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66(6), pages 467-467.
    3. Galor, Oded, 1992. "The Choice of Factor Mobility in a Dynamic World," Journal of Population Economics, Springer;European Society for Population Economics, vol. 5(2), pages 135-144, April.
    4. Jean-Pierre Vidal & Philippe Michel & Bertrand Crettez, 1996. "Time preference and labour migration in an OLG model with land and capital," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(4), pages 387-403.
    5. Galor, Oded, 1986. "Time preference and international labor migration," Journal of Economic Theory, Elsevier, vol. 38(1), pages 1-20, February.
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    Citations

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    Cited by:

    1. Philippe Monfort & David de la Croix, 2000. "Education funding and regional convergence," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(3), pages 403-424.
    2. Damien Gaumont & Alice Mesnard, 2001. "Inheritance, land, and capital mobility linked to labour mobility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(4), pages 669-687.
    3. Vidal, Jean-Pierre, 2000. "Capital Mobility in a Dynastic Framework," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 606-625, July.
    4. Lionel, ARTIGE, 2004. "Endogenous Growth and Regional Dynamics in an OLG Model with Land," LIDAM Discussion Papers IRES 2004028, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    5. Damien Gaumont & Alice Mesnard, 2000. "Altruism and international labour migration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 113-126.
    6. Damien Gaumont & Charbel Macdissi, 2012. "International Migration And Uncertainty:A Non-Factor Price Equalization Overlapping Generations Model," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 55(2), pages 151-177.
    7. Jean-Pierre Vidal, 1998. "The effect of emigration on human capital formation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(4), pages 589-600.
    8. Vidal, J.-P., 1999. "Capital Mobility in a Dynastic Framework," G.R.E.Q.A.M. 99a21, Universite Aix-Marseille III.
    9. Ronald Ravinesh Kumar & Peter J. Stauvermann, 2023. "International Borrowing and Lending in the Presence of Oligopolistic Competition," JRFM, MDPI, vol. 16(8), pages 1-26, July.

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    More about this item

    Keywords

    Overlapping generations models · migrations · capital mobility · land;

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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