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Title: Wealth Accumulation and Growth in a Specific-Factors Model of Trade and Finance.
Authors: Petrucci, Alberto
Keywords: Specific-Factors; Capital Accumulation; Land; Net Foreign Assets; Finite Horizons.
Issue Date: 16-Jun-2006
Abstract: This paper investigates the allocative properties of an OLG specificfactors small open economy facing perfect capital mobility. Wealth formation, economic development and different labor market regimes are at the center-stage of the analysis. In a model with competitive wages and no unemployment, we find that exogenous shocks that do not affect human wealth like the terms of trade and land endowment shifts or the propensity to save, leave nonhuman wealth, consumption and aggregate labor
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