Journal ArticleDOI
Accumulation and Growth in a Two-Country Model
David Lipton,Jeffrey D. Sachs +1 more
TLDR
In this paper, the authors present a two-good growth model of two market economies in which economic agents optimize with perfect foresight, and stress the importance of asset markets as the linkage that transmits disturbances both internationally and intertemporally.About:
This article is published in Journal of International Economics.The article was published on 1983-08-01. It has received 85 citations till now.read more
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Testing a present-value model of the current account: Evidence from US and Canadian time series
TL;DR: In this paper, a simple model of current account determination, based upon the permanent-income hypothesis of private consumption behavior, under rational expectations, is presented, which employs a representative national agent, who is forward-looking and can borrow and lend at a constant world interest rate.
Posted Content
The International Ramifications of Tax Reforms: Supply-Side Economics in a Global Economy
TL;DR: In this paper, tax reforms in a dynamic model of a global economy calibrated to current U.S. and European tax policies are studied and the results show that the welfare gains of eliminating or increasing U. S. income taxes are enlarged by up to 34 percent at the expense of European losses caused by transitional declines in consumption and leisure and a permanent capital outflow.
Journal ArticleDOI
Current account dynamics in a finite horizon model
TL;DR: In this article, the authors examined the response of the current account in a small open economy to a permanent change in the price of imported intermediate goods and extended Blanchard's (1985) open economy model to incorporate the capital stock with adjustment costs.
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Multiple Shooting in Rational Expectations Models
David Lipton,James M. Poterba,James M. Poterba,Jeffrey D. Sachs,Jeffrey D. Sachs,Lawrence H. Summers,Lawrence H. Summers +6 more
TL;DR: In this paper, an algorithm for the solution of rational expectations models with saddlepoint stability properties is described. The algorithm is based on the method of multiple shooting, which is widely used to solve mathematically similar problems in the physical sciences.
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Effects of Unilateral Climate Policy on Terms of Trade, Capital Accumulation, and Welfare in a World Economy
TL;DR: In this article, the authors present a two-good, two-country overlapping generations model where emissions arise from production and each country has a domestic emission permit system, and they show that when one country unilaterally reduces her cap on emissions, her output available for domestic and foreign consumption diminishes more than in the other country.
References
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Journal ArticleDOI
Adjustment Costs and the Theory of Supply
TL;DR: In this paper, the relative fixity of capital is introduced explicitly into the formulation of the firm's maximum problem and used this formulation to obtain a precise definition of the industry's "short run" and "long run" equilibrium posi-
ReportDOI
Time Preference and International Lending and Borrowing in an Overlapping-Generations Model
TL;DR: In this paper, two economies, represented by diamond-type overlapping-generations models and differing only in their pure rates of time preference, are compared under autarky and openness.
Journal ArticleDOI
External and Internal Adjustment Costs and the Theory of Aggregate and Firm Investment
TL;DR: In this paper, it is argued that there is no conflict between the "supply function theory" and the "adjustment cost theory" of the investment function, and that the form and properties of investment function are influenced by both external and internal adjustment costs.