IDEAS home Printed from https://ideas.repec.org/p/isu/genres/34857.html
   My bibliography  Save this paper

Intergenerational Welfare and Trade

Author

Listed:
  • Cremers, Emily

Abstract

This paper examines the dynamic effects of international commodity trade by mergingtwo benchmark environments, namely, the static factor endowments model and theneoclassical growth model. Two main questions are asked. First, how does commoditytrade affect the capital-accumulation paths of two trade partners? Second, do the welfareeffects associated with these dynamics serve to reinforce or mitigate the well-knownwelfare effects associated with the static factor endowments model? It is demonstratedthat trade will eventually, if not immediately, narrow the difference in domestic capitalaccumulation paths. This narrowing introduces a negative welfare effect that is largeenough to worsen overall welfare for the country whose capital accumulation hasdeclined. Thus, although the dynamic effects of trade are large enough to dominate

Suggested Citation

  • Cremers, Emily, 2012. "Intergenerational Welfare and Trade," Staff General Research Papers Archive 34857, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:34857
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isu:genres:34857. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.