The Transfer Paradox in the One-Sector Overlapping Generations Model

Emily Cremers and Partha Sen

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: This paper examines the effects of international income transfers on capital accumulationand welfare in a one-sector overlapping generations model. It is shown that a strong form ofthe transfer paradox – in which the donor country experiences a welfare gain while therecipient country experiences a welfare loss – may occur both in and out of steady state. Inaddition, it is shown that a weak form of the transfer paradox – where either the donor orrecipient (but not both) experiences a paradoxical welfare effect – may characterize allsegments of the transition path not already characterized by the strong transfer paradox.

Keywords: Transfer Paradox; Overlapping Generations (search for similar items in EconPapers)
JEL-codes: F11 F35 F43 O19 O4 (search for similar items in EconPapers)
Date: 2008-01-27
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Published in Journal of Economic Dynamics and Control 2008, vol. 32, pp. 1995-2012

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: The Transfer Paradox in a One-Sector Overlapping Generations Model (2010)
Journal Article: The transfer paradox in a one-sector overlapping generations model (2008)
Working Paper: The Transfer Paradox in a One-Sector Overlapping Generations Model (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:34855

Access Statistics for this paper

More papers in Staff General Research Papers Archive from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().