On the Open Economy version of the Solow-Swan Model
|Speaker:||Gerhard Sorger, Queen Mary and Westfield College|
|Date:||Friday 3 November 2000|
|Location:||Room 106 Streatam Court|
We study a multi-country version of the Swan-Solow model of capital accumulation. Capital is mobile but does not necessarily flow instantaneously to the country with the highest return. We show that, in general, the model possesses infinitely many stationary equilibria, then derive bounds on the possible values of the world interest rate in these stationary equilibria, and finally we discuss a generalization of the golden rule to the multi-country version of the Solow-Swan model.