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Cunat, Alejandro; Maffezzoli, Marco - In: Review of Economic Dynamics 7 (2004) 3, pp. 707-736

We construct a dynamic Heckscher-Ohlin model in which the initial distribution of production factors across economies makes factor price equalization impossible. The model produces dynamics similar to those of the neoclassical growth model. However, free trade prevents identically parameterized...

Persistent link: https://www.econbiz.de/10005085506

Trade, Growth, and Convergence in a Dynamic Heckscher-Ohlin Model

Bajona, Claustre; Kehoe, Timothy - In: Review of Economic Dynamics 13 (2010) 3, pp. 487-513

In models in which convergence in income levels across closed countries is driven by faster accumulation of a … productive factor in the poorer countries, opening these countries to trade can stop convergence and even cause divergence. We …. Divergence can occur for parameter values that would imply convergence in a world of closed economies and vice versa. Second …

Persistent link: https://www.econbiz.de/10008504403

Optimal Capital Taxation and Labor Market Search

Domeij, David - In: Review of Economic Dynamics 8 (2005) 3, pp. 623-650

In this paper I study the nature of optimal factor income taxation in a neoclassical growth model where search frictions on the labor marker generate unemployment. I show that the introduction of search frictions changes the Chamley-Judd result of zero capital taxation as follows: if the...

Persistent link: https://www.econbiz.de/10005069617

Human Capital Investment and Debt Constraints

Andolfatto, David; Gervais, Martin - In: Review of Economic Dynamics 9 (2006) 1, pp. 52-67

When young individuals face binding debt constraints, their human capital investments will be insufficiently financed by private creditors. If generations overlap, then a well-designed fiscal policy may be able to improve human capital investments by replacing missing capital markets with an...

Persistent link: https://www.econbiz.de/10005090996

Political Economy of Taxation in an Overlapping-Generations Economy

Bassetto, Marco - In: Review of Economic Dynamics 11 (2008) 1, pp. 18-43

This paper analyzes the effects of intergenerational conflict on capital and labor income tax rates, transfers, and government spending in a model of multidimensional policy choice. The different nature of tax liabilities for the young and the old can explain why the old receive large gross...

Persistent link: https://www.econbiz.de/10005027352

Credit Crunches and Credit Allocation in a Model of Entrepreneurship

Bassetto, Marco; Cagetti, Marco; Nardi, Mariacristina De - In: Review of Economic Dynamics 18 (2015) 1, pp. 53-76

We study the effects of credit shocks in a model with heterogeneous entrepreneurs, financing constraints, and a realistic firm-size distribution. As entrepreneurial firms can grow only slowly and rely heavily on retained earnings to expand the size of their business, we show that, by reducing...

Persistent link: https://www.econbiz.de/10011160658