Purpose – The chapter examines whether the well-known Kemp–Wan proposition about customs unions is valid for free trade associations (FTAs). Methodology/approach – The chapter employs the assumption of perfect competition but with considerable generality. Findings – It is shown that the...

This volume addresses important issues in economic theory and international trade with contributions from internationally renowned researchers - including some of Murray C. Kemp's many colleagues and former students. Economic Theory and International Trade begins with an examination of classical...

Frontmatter -- Preface -- Contents -- I. Introduction -- II. The Statistical Data -- III. The Method of Estimation -- IV. Estimates of the Price and Income Elasticities of Import Demand -- V. The Direction of Future Research -- Appendix I. Statistical Series -- Appendix II. Alternative...

1 Linear Inequalities -- 1 Some Fundamental Theorems -- 2 Linear Programming and Matrix Games -- 3 Convex Sets and Convex Cones -- 4 Nonlinear Programming -- 2 Nonnegative Matrices -- 1 The Perron-Frobenius Theorem -- 2 Power-Nonnegative Matrices -- 3 Some Special Matrices -- 1 P-, NP-, PN-, and...

Conditions sufficient for factor price equalization within any non-trivial subset of trading countries are provided. The conditions are that (a) the factor endowment ratios of countries in the subset are all bounded by the factors-in-use ratios in an equilibrium of the hypothetical world economy...

The classical gains-from-trade conjecture was finally given a thorough Arrow-Debreu proof in 1972. Since then, the proposition has been repeatedly challenged. Some of the challenges rest on grounds which in no respect violate Arrow-Debreu assumptions. Those challenges are therefore without...