Title: Portfolio autarky
Description: "Portfolio autarky obtains when residents of every country are prohibited from owning real assets located in other countries.  Such a regime and a laissez-faire regime, both characterized by free trade in goods, are studied in a model whose resource and technology assumptions are those of the standard two-country, two- (nonreproducible) factor, two- (nonstorable) good model.  But to ensure a market for assets (land), the model is peopled by overlapping generations; each two-period lived individual supplies one unit of labor only in the first period of his life.  Unique equilibria are described and shown to exist, and, in terms of a "growth model" version of the Pareto criterion, laissez-faire is shown to be optimal and portfolio autarky to be nonoptimal"--Federal Reserve Bank of Minneapolis web site.
Subjects: Real property, Foreign ownership, Free trade