Intertemporal equilibrium and the transfor paradox
The transfer paradox may occur in a world with only two countries at a 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 the donor. Away from the golden rule, a transfer may result in a Pareto improvement.
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|Date of creation:||01 Jan 1984|
|Date of revision:|
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