This paper examines the long-run consequences of capital movements in an overlapping generation growth model with bequest motive. Whereas there are only terms-of-trade effects of free capital movements across countries in the traditional Solow-type growth model, there are three kinds of effects...

This paper examines capital movements in the overlapping generations and Solow models. For the overlapping generations model, a simple compensation scheme is developed to show how the gaining generation(s) can always compensate the losing generation(s) and still gain in the move from autarky to...

This paper examines the long consequences of capital movements in overlapping generation growth model with bequest motive. Whereas there is only terms of trade effect of free capital movements across countries in the traditional of trade effect, and golden rule effect. In the capital-importing...