This paper considers the shape of the production possibility set with a public intermediate good of the atmos phere type. The elements which tend to give rise to a concave product ion frontier are isolated from those which tend to generate a convex one. By using the notion of the production...

This paper incorporates equilibrium unemployment caused by efficiency wages into a monopolistic competition model of trade. Worker effort is treated as an endogenous variable that depends on the optimizing behaviour of firms and workers. Opening up trade induces firms to demand greater worker...

This paper considers the implications for the Stolper-Samuelson and Rybczynski theorems of a pure public intermediate good. Necessary and sufficient conditions for the theorems to hold in their strong versions are derived. They show a close formal resemblance to those known from the model with...