کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
972507 1479740 2015 7 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Uncertain lifetimes and convergence in a two-country Heckscher–Ohlin model
موضوعات مرتبط
مهندسی و علوم پایه ریاضیات ریاضیات کاربردی
پیش نمایش صفحه اول مقاله
Uncertain lifetimes and convergence in a two-country Heckscher–Ohlin model
چکیده انگلیسی


• With Heckscher–Ohlin trade structure, no convergence in infinite horizon dynamic models.
• With uncertain lifetimes, get convergence.
• Aggregate consumption growth is pulled down by existing capital stock.

In a two-country infinite-horizon model, with two traded goods and two factors of production and no international borrowing and lending, there is no convergence of incomes if there is factor-price equalization. With factor-price equalization, the Euler equations of the two economies become identical. I show that in such a set-up if agents have a non-zero probability of death, then we do get convergence. In the steady state the two economies have identical capital–labor ratios and revert to autarky.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Mathematical Social Sciences - Volume 78, November 2015, Pages 14–20
نویسندگان
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