This paper characterizes the interactions among studying abroad, return migration, and capital accumulation, in a two-country overlapping generations model with households of heterogeneous ability. The model exhibits positive selection of migration status (i.e., permanent, return, and...

We formulate a two-country, two-good, two-factor, two-period-lived overlapping generations model to examine how population aging determines the pattern of and gains from trade. Two main results are obtained. First, the aging country endogenously becomes a small country exporting the...

Almost all existing literature assumes immigrants immediately assimilate in the receiving country. In contrast, the present paper considers the case of non-immidiate assimilation, and analyzes immigration conflicts in an overlapping generations dynamic system. We examine three types of conflicts...

This paper examines multinational public goods provision under multilateral income transfers and productivity differences across countries. We assume the existence of a planner who uses linear approximation for utility maximization for all countries. The main findings are: (i) A country is an...