Capital markets integration, growth and income distribution

Jean Marie Viaene*, Itzhak Zilcha

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

The paper considers a two-country model of overlapping generation heterogenous economies with intergenerational transfers carried out in the form of bequest and investment in human capital. We examine in competitive equilibrium the transitory and long-run effects of capital markets integration. First, we explore how the regime of public education affects the dynamics of the integrated economy. Second, we study the effects of capital markets integration, in equilibrium, on the intragenerational income distribution in both the host and investing country.

Original languageEnglish
Pages (from-to)301-327
Number of pages27
JournalEuropean Economic Review
Volume46
Issue number2
DOIs
StatePublished - 2002

Keywords

  • Altruism
  • Capital markets integration
  • Growth
  • Human capital
  • Income distribution

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