A Solution to Two Paradoxes of International Capital Flows

A Solution to Two Paradoxes of International Capital Flows
International capital flows from rich to poor countries can be regarded as either too low (the Lucas paradox in a one-sector model) or too high (when compared with the logic of factor price equalization in a two-sector model). To resolve the paradoxes, we introduce a non-neoclassical model which features financial contracts and firm... READ MORE...

Publication date: July 2006
ISBN 9781451864380
$15.00

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