Making use of a simple, yet powerful, new approach, the author generalizes and extends many results concerning the relationship between national welfare and capital-flow induced changes in tariff protection or tariff-induced changes in the factor terms-of-trade in single- and multihousehold...

The paper compares and contrasts various models of factor market distortions and their implications for gains from trade and the theorem of comparative advantage. The focus is on models with sector specific wage rates and involuntary unemployment. The models and results of the seventies and...

The traditional essentially Ricardian model of the voluntary production of pure public goods is generalized to comprise any number of private and public goods, factors of production, and households. The main novel feature of our approach is to use a household production model. The efficiency...

This paper offers a new mechanism to explain de-industrialisation in response to a price increase of the manufactured good. In our trade model, one sector (agriculture) is perfectly competitive while the other (manufacturing) is monopolistically competitive. Both industries use skilled and...