@techreport{NBERw0352,
 title = "Time Preference and International Lending and Borrowing in an Overlapping-Generations Model",
 author = "Willem H. Buiter",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "352",
 year = "1979",
 month = "May",
 URL = "http://www.nber.org/papers/w0352",
 abstract = {Two economies, represented by Diamond-type overlapping-generations models and differing only in their pure rates of time preference, are joined together. Capital formation, balance-of-payments behavior, and welfare are compared under autarky and openness. With a positive natural rate of growth, the low-time-preference country runs a current account surplus in the steady state but not necessarily outside it. If preexisting capital is not shiftable between countries, integration in the world economy makes the high-time-preference country worse off in the short run. The ranking of stationary utility levels under autarky and openness is ambiguous.},
}