On the Open Economy version of the Solow-Swan Model

Economics

Speaker:Gerhard Sorger, Queen Mary and Westfield College
Date: Friday 3 November 2000
Time: 16:15
Location: Room 106 Streatam Court

Further details

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.