@article{EnglerWulff2014,
  author    = {Engler, Philipp and Wulff, Alexander},
  title     = {Opposition to capital market opening},
  series = {Applied economics letters},
  volume    = {21},
  journal   = {Applied economics letters},
  number    = {6},
  publisher = {Routledge, Taylor \& Francis Group},
  address   = {Abingdon},
  issn      = {1350-4851},
  doi       = {10.1080/13504851.2013.868579},
  pages     = {425 -- 428},
  year      = {2014},
  abstract  = {We employ a neoclassical growth model to assess the impact of financial liberalization in a developing country on capital owners' and workers' consumption and welfare. We find for an average non-OECD country that capital owners suffer a 42\% reduction in permanent consumption because capital inflows reduce their return to capital while workers gain 8\% of permanent consumption because capital inflows increase wages. These huge gross impacts contrast with the small positive net effect found in a neoclassical representative agent model by Gourinchas and Jeanne (2006). Our findings provide an estimate of the amount of redistribution needed to overcome capitalists' opposition to capital inflows.},
  language  = {en}
}