This paper analyzes the implications of three types of technical progress on outputs in a variable returns-to-scale framework. It is shown that Hicks-ne utral technical improvement is ultra-biased in production regardless of the direction and severity of the returns to scale. The output eff ect...

In this paper, the authors analyze the factors determining the pattern of trade between underemployed economies. They find, among other things, that a low-wage, land-abundant country exports the land-using, labor-intensive product to a high-wage, capital-abundant country. The authors also find...

This paper investigates optimal trade policies for a small open economy with unemployment. When factor prices are rigid, random foreign prices result in random unemployment of resources. The ranking of second-best policies is investigated. If the marginal propensity to consume the importable is...