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Accumulation and Growth in a Two-Country Model

David Lipton; Jeffrey D. Sachs

Title:
Accumulation and Growth in a Two-Country Model
Author(s):
Lipton, David
Sachs, Jeffrey D.
Date:
Type:
Working papers
Department:
Earth Institute
Permanent URL:
Part Number:
572
Publisher:
National Bureau of Economic Research
Publisher Location:
Cambridge, Mass.
Abstract:
This paper analyzes saving and capital accumulation in a two-good growth model of two market economies in which economic agents optimize with perfect foresight. The goal is to present a model in which short-run dynamics and the steady-state are soundly integrated. We stress the importance of asset markets as the linkage that transmits disturbances both internationally and intertemporally. While many components of the model described below can be found in the literature on optimal consumption, investment and international growth models, we provide a consistent synthesis. Our framework permits the analysis of structural adjustment in the global economy, and the dynamic effects of a wide range of public policies.
Subject(s):
Economics
Item views:
129
Metadata:
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