Publications [#239245] of Edward Tower

Journal Articles

1. Gokcekus, O; Tower, E, Does Trade liberalization benefit young and old alike?, Review of International Economics, vol. 6 no. 1 (January, 1998), pp. 50-58, WILEY, ISSN 0965-7576 [doi]
   (last updated on 2025/04/18)

   Abstract:
   In an overlapping generations model, capital and labor produce two tradable goods. A kleptocratic government spends the tariff revenue. Trade liberalization benefits the retired generation if and only if the relative price of the capital-intensive good rises. Starting from autarky, a small liberalization benefits subsequent generations if and only if it hurts the retired one, a result reminiscent of the Stolper-Samuelson theorem. However, the terms-of-trade effect means a large liberalization may simultaneously raise the welfare of all generations.