Intertemporal equilibrium and the transfor paradox
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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|Date of creation:||01 Jan 1984|
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