Showing 1 - 10 of 594
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...
Persistent link: https://www.econbiz.de/10005650722
This paper presents a simple overlapping generations model of small open economy with child-parent externality that exhibits chaotic equilibrium dynamics.
Persistent link: https://www.econbiz.de/10005675553
Persistent link: https://www.econbiz.de/10011274535
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...
Persistent link: https://www.econbiz.de/10005489459
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...
Persistent link: https://www.econbiz.de/10005025503
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...
Persistent link: https://www.econbiz.de/10005650729
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.
Persistent link: https://www.econbiz.de/10005650732
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.
Persistent link: https://www.econbiz.de/10005650736
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.
Persistent link: https://www.econbiz.de/10005650738
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...
Persistent link: https://www.econbiz.de/10005675567