This paper proposes a new, production theory approach to the determination of the real exchange rate, which is defined as the relative price of traded to nontraded goods as is common in the international trade literature. Using a Translog real GDI function that describes the aggregate technology...

Recently much attention has been devoted to superlative indexes in the context of the national accounts. In this paper we advocate the use of the implicit Törnqvist quantity index to measure real GDP. This index, which has been proposed by Diewert and Morrison (1986), has never received serious...

During the last few decades the world has experienced an unprecedented level of cross-border migration. While this has generated significant socio-economic gains for host countries, as well as sometimes for the countries of origin, the costs and benefits involved are unevenly distributed....

In this paper we estimate oil and nonoil import demand functions for the United States under the assumption that import prices are uncertain. Both import demand functions are formally derived from an expected utility maximization problem, treating imports as inputs to the technology. The model...

Using duality theory, we give a simple mathematical proof of some well‐known theorems of international trade theory. The two‐sector production model is described by a joint cost function from which the standard comparative statics results can be derived with little difficulty: all that is...