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Incorporating International Capital Mobility into SALTER

Salter Working Paper Number 21

Incorporating International Capital Mobility into SALTER by Robert McDougall is Working Paper number 21 in the development of The SALTER Model of the World Economy.

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Contents

1   SALTER background

2   Overview of the capital mobility extension
The framework
International allocation of capital
The world stock of capital
National, household and government accounts
International allocation of investment

3   Modifications to the SALTER theoretical structure
International allocation of capital
The world capital stock
Wealth accumulation
National income
Household income
Government receipts and outlays
International allocation of investment

4   Modifications to the SALTER database

Appendix A   The wealth accumulation equations

Appendix B   Expected rate of change in the rate of return on capital

References

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