International asset market, nonconvergence, and endogenous fluctuations

• 成果类型: Article
• 署名作者: Kikuchi, Tomoo
• 署名单位: National University of Singapore
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2007.05.008
• 发表日期: 2008
• 页码: 310-334
• 关键词: international asset market; Endogenous cycles; inequality of nations; Two-country model

摘要

We develop an overlapping generations model with re-tradeable 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. Consumers who live for two periods 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. (c) 2007 Elsevier Inc. All rights reserved.