IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper


Listed author(s):
  • Serdar Sayan
  • Mehdi Jelassi

We study the time paths of different variables on the way to the analytically obtained long-run autarky equilibrium for a 2-sector, 2-factor overlapping generations economy under different initial conditions and parameter confıgurations, and investigate implications of the initial conditions for convergence and growth. We then proceed to study the sensitivity of dynamic equilibrium to changes in the population growth rate and explore how differences in demographic characteristics across countries may create the basis for long-run comparative advantages opening the way for free trade between two countries that are identical except for population growth rates in much the same way as done in the Heckscher-Ohlin (HO) model. Our results establish that population growth rate differences will serve as determinants of HO-type comparative advantages but free trade will not necessarily imply welfare gains for both parties unlike what the static HO model would predict. The explanation we offer for this nicely complements previously suggested reasons in the dynamic trade literature to explain why trade may not improve welfare for both parties in a dynamic OLG set-up with stationary populations.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" 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.

Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2005 with number 286.

in new window

Date of creation: 11 Nov 2005
Handle: RePEc:sce:scecf5:286
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:sce:scecf5:286. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.