Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92709
Authors: 
Hirose, Ken-Ichi
Ikeda, Shinsuke
Year of Publication: 
2013
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 887
Abstract: 
We examine stability of competitive equilibrium in an N-country world economy with capital accumulation, where each country can have either increasing marginal impatience (IMI) or decreasing marginal impatience (DMI). The necessary and sufficient condition for stability is shown as positive definiteness of a simple matrix. The condition requires that any positive perturbation in one country's wealth, adjusted for international spill-over effects on other country's savings, reduces the country's wealth accumulation. In the presence of a DMI country, the number of countries should be sufficiently small for stability. Particularly, the existence of two or more than two DMI countries implies instablility.
Subjects: 
stability
decreasing marginal impatience
N-country economy
JEL: 
F41
F32
E00
Document Type: 
Working Paper

Files in This Item:
File
Size
147.11 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.