Aging, transitional dynamics, and gains from trade

Takumi Naito, Laixun Zhao

研究成果: Article

12 引用 (Scopus)

抜粋

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 capital-intensive good, whereas the younger country endogenously dominates the world economy determining the world prices, in the free trade steady state. Second, although uncompensated free trade cannot be Pareto superior to autarky, there exists a compensation scheme applied within each country such that free trade is Pareto superior to autarky.

元の言語English
ページ(範囲)1531-1542
ページ数12
ジャーナルJournal of Economic Dynamics and Control
33
発行部数8
DOI
出版物ステータスPublished - 2009 8 1

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ASJC Scopus subject areas

  • Economics and Econometrics
  • Control and Optimization
  • Applied Mathematics

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