In a classical world where prices of both northern manufactures and southern raw materials are determined by market demand and supply, technical progress in one region leads to a terms-of-trade improvement of the other region irrespective of whether technical progress is labor-saving or...

This paper calculates, using a representative-agent model of a small open economy, the optimal rate of national saving for Australia and Japan for the period from the middle 1990s to 2050. The calculations focus on the implications of making allowance for the aging structure of the population in...

In the absence of a binding pre-commitment mechanism, a government has an incentive to renege on announced policy. This is a well-established result in the literature. The paper applies this theory to tariff policy by developing a two-game model to analyze the credibility of government tariff...