Cheng, Wenli; Sachs, Jeffrey; Yang, Xiaokai - In: Review of International Economics 8 (2000) 2, pp. 208-20
This paper shows that a 2 x 2 Ricardian model has a unique general equilibrium, and the comparative statics of the equilibrium involve discontinuous jumps. If partial division of labor occurs in equilibrium, the country producing both goods would impose a tariff, whereas the country producing a...
