Direct and Indirect Trade Utility Functions.

In this article the concept of an indirect trade utility function is introduced, its properties are developed, and its application to the theory of international trade and to the econometric estimation of export supply and import demand functions are discussed. The indirect trade utility function ex...

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Publicado en:Review of Economic Studies Vol. 47; no. 5; pp. 907 - 927
Autor principal: Woodland, A. D.
Formato: Artículo
Publicado: Oxford University Press / USA Oct80
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Direct and Indirect Trade Utility Functions.
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        au: Woodland, A. D.
        affil: University of British Columbia.
      su:
        International trade
        Utility functions
        Microeconomics
        Production possibility curve
        Econometric models
        Economic demand
        Demand for money
        Economics
        Market potential
        Commercial policy
      sug:
        subj:
          International trade
          Utility functions
          Microeconomics
          Production possibility curve
          Econometric models
          Economic demand
          Demand for money
          Economics
          Market potential
          Commercial policy
      ab: In this article the concept of an indirect trade utility function is introduced, its properties are developed, and its application to the theory of international trade and to the econometric estimation of export supply and import demand functions are discussed. The indirect trade utility function expresses the maximum level of utility a trading nation can attain, assuming the existence of a direct community utility function, as a function of a vector of prices for commodities, a vector of factor endowments and the balance of trade. As such it provides a summary of all the consumption and production decisions within a competitive economy. While the discussion is focused on a national economy trading with other nations in the world market, it should be clear that the model applies equally well to the individual consumer who undertakes marketable production. Examples include the self-employed businessman or farmer. The indirect trade utility function then indicates the maximum utility attainable given the prices of the commodities marketable products and purchasable inputs in the market, the endowments of fixed factors such as land and the net value payments.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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