Growth and International Trade: An Introduction to the Overlapping Generations Approach (Springer Texts in Business and Economics)

This textbook guides the reader towards various aspects of growth and international trade in a Diamond-type overlapping generations framework. Using the same model type throughout the book, timely topics such as growth with bubbles, debt reduction in rich countries and policies to mitigate climate change are explored . The first part starts from the "old" growth theory and bridges to the "new" growth theory (including R & D and human capital approaches). The second part presents an intertemporal equilibrium theory of inter and intra-sectoral trade and concludes by analyzing the debt mechanics inducing the huge imbalances among eurozone countries. The book is primarily addressed to graduate students wishing to proceed to the analytically more demanding journal literature Front Matter....Pages i-xv Growth and International Trade: Introduction and Stylized Facts....Pages 1-26 Front Matter....Pages 27-27 Modeling the Growth of the World Economy: The Basic Overlapping Generations Model....Pages 29-53 Steady State, Factor Income, and Technological Progress....Pages 55-80 Economic Growth and Public Debt in the World Economy....Pages 81-109 “New“ Growth Theory and Knowledge Externalities in Capital Accumulation....Pages 111-135 Endogenous Technological Progress and Infinite Economic Growth....Pages 137-150 Human Capital, Religion, and Economic Growth....Pages 151-167 Economic Growth With Bubbles....Pages 169-188 Front Matter....Pages 189-189 International Parity Conditions in a Two-Country OLG Model Under Free Trade....Pages 191-213 Factor Proportion, Inter-Sectoral Trade, and Product Life Cycle....Pages 215-233 Product Differentiation, Decreasing Costs, and Intra-sectoral Trade....Pages 235-257 Globalization, Capital Accumulation, and Terms of Trade....Pages 259-277 Innovation, Growth and Trade in a Two-Country OLG Model....Pages 279-299 Real Exchange Rate and Public Debt in a Two-Advanced-Country OLG Model....Pages 301-331 Public Debt Reduction in Advanced Countries and Its Impacts on Emerging Countries....Pages 333-360 External Balance, Dynamic Efficiency and Welfare Effects of National Climate Policies....Pages 361-390 Nationally and Internationally Optimal Climate Policies....Pages 391-411 Modeling the Debt Mechanics of the Euro Zone....Pages 413-436 Back Matter....Pages 437-443