A Ricardo model with economies of scale.
The analysis of the classical n-good two-country Ricardo model of international trade is extended to the case where the production functions have economies of scale. New integer programming and linear programming methods are used to deal with the technical difficulties inherent in economies of scal...
| Publicado en: | Journal of Economic Theory Vol. 62; pp. 394 - 420 |
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| Autor principal: | |
| Formato: | Artículo |
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Academic Press Inc.
April 1994
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | The analysis of the classical n-good two-country Ricardo model of international trade is extended to the case where the production functions have economies of scale. New integer programming and linear programming methods are used to deal with the technical difficulties inherent in economies of scale. Analysis indicates the presence of a well-defined region that fills in solidly with equilibrium points as the number of goods becomes large. The ability to analyze these large models leads to new economic conclusions, such as that substantial conflict exists between the interests of the two trading partners in the presence of economies of scale. |
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