TY  - JOUR
AU  - Buiter,Willem H.
TI  - Time Preference and International Lending and Borrowing in an Overlapping-Generations Model
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 352
PY  - 1979
Y2  - May 1979
UR  - http://www.nber.org/papers/w0352
L1  - http://www.nber.org/papers/w0352.pdf
N1  - Author contact info:
Willem H. Buiter
Citigroup Centre
Canada Square, Canary Wharf
London E14 5LB
UNITED KINGDOM
E-Mail: willembuiter@btinternet.com
AB  - 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.
ER  -