TY - JOUR
T1 - Debt and capital accumulation in a two-sector model with non-traded goods
AU - Hochman, Oded
AU - Razin, Assaf
N1 - Funding Information:
TThe authors wish to thank John Gardner and Joanne Salop for their helpful comments on an earlier draft. We are greatly indebted to a referee for his critica comments and suggestions. We also wish to thank the editor for his enlightening remarks. The paper was presented at the San Francisco Meetings of the American Econometric Society 1974. A partial financial support from the Foerder Institute is acknowledged.
PY - 1976/8
Y1 - 1976/8
N2 - The paper examines optimal debt and capital accumulation for an open economy which faces an imperfect international capital market. The major finding is that the optimal pattern of debt and capital accumulation is affected by relative factor intensities. Factor intensities determine whether substitution or complementary relationships exist between debt and capital. The relationship between the country's net wealth and its two components financial and productive are also determined by factor intensities.
AB - The paper examines optimal debt and capital accumulation for an open economy which faces an imperfect international capital market. The major finding is that the optimal pattern of debt and capital accumulation is affected by relative factor intensities. Factor intensities determine whether substitution or complementary relationships exist between debt and capital. The relationship between the country's net wealth and its two components financial and productive are also determined by factor intensities.
UR - http://www.scopus.com/inward/record.url?scp=49549131985&partnerID=8YFLogxK
U2 - 10.1016/0014-2921(76)90011-8
DO - 10.1016/0014-2921(76)90011-8
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AN - SCOPUS:49549131985
SN - 0014-2921
VL - 8
SP - 165
EP - 180
JO - European Economic Review
JF - European Economic Review
IS - 2
ER -