We show that even under socially constant returns to scale indeterminacy, i.e., a continuum of dynamic general equilibrium paths converging to a common steady state, can arise in a dynamic Heckscher-Ohlin model with production externality and endogenous time preference in which production is...

This paper presents a simple overlapping generations model of small open economy with child-parent externality that exhibits chaotic equilibrium dynamics.

We present a simple two(-country) by two(-good) differental game model of international trade in which the governments of the two countries play a tariff-setting game. We explicitly derive a unilateral optimum tarifff rate and then a Markov-perfect equilibrium pair of tariff strategies...

This paper connects a traditional topic in trade theory with a new topic in economic dynamics in a simple two(-country) by two(-good) dynamic general equilibrium (dge) model by showing that the transfer paradox, or the donor-enrichment and recipient-impoverishment transfer, is possible if and...

We formulate a two(-country) by two(-tradable good) by two(-factor) dynamic general equilibrium model of endogenous growth and international rade that has no market distortion. After deriving the conditions for a balanced growth path with incomplete specialization in both countries to exist and...

In the present note we construct an overlapping-generations (OLG) example in which free trade is Pareto-improving and the world equilibrium chaotic. The example is simple, but it is not incompatible with the general model of Kemp and Wolik.

Constructing a two-good (a competitive and monopolized goods), two-primary factor (capital and labor) and two-country model of international trade where the monopolized sector is subject to increasing returns to scale, we establish an oligopolistic version of the Heckscher-Ohlin Theorem.

The conclusions of the 1976 Kemp-Wan proposition are shown to be substantially valid even if all tariff vectors, both pre-union and post-union, are optimally chosen.

We present a specific utility function which generates Giffen behavior. The derived demand function of each good is not only continuous in its price and income but also partly increasing in its price and decreasing in income. Moreover, we show that Giffen behavior is compatible with arbitrary...