TIME PREFERENCE AND CAPITAL MOBILITY IN AN OLG MODEL WITH LAND

This paper examines the pattern of capital mobility in a two-country o verlapping generations world in which production uses three inputs: ca pital, labor and land, The steady-state welfare consequences of openin g countries to financial capital or labor mobility are then compared, In particular, it is shown that capital mobility does not equalize sta ndards of living across countries. To achieve this goal, one has to re ly on labor mobility.