TY  - GEN
AB  - We develop an overlapping generations model with retradeable paper assets and capital accumulation to analyze the interaction between the real economy and an international asset market. The world consists of two homogeneous countries, which differ only in their initial levels of capital. Two period lived consumers transfer wealth over time and across countries by holding international mutual funds which pay stochastic dividends. The optimal portfolio decisions of consumers do not necessarily induce convergence of incomes between the two countries. Moreover, interaction through the asset market induces endogenous fluctuation of capital flows between the rich and the poor country.
DA  - 2006
KW  - Inequality of nations
KW  - International asset market
KW  - Endogenous cycles
KW  - Two-country model
LA  - eng
PY  - 2006
TI  - International asset market, nonconvergence, and endogenous fluctuations
UR  - https://nbn-resolving.org/urn:nbn:de:hbz:361-9537
Y2  - 2024-11-22T06:51:37
ER  -