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An Interactive Computer Model of Two-Country Trade

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Author Info

  • William Hamlen

    ()
    (SUNY/Buffalo)

  • Kevin Hamlen

    ()
    (University of Texas at Dallas Richardson)

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    Abstract

    We introduce an interactive computer model of two-country trade that allows students to investigate the consequences of changing economic parameters. The model is self-contained and makes no assumption concerning the existence of social welfare functions or social indifference curves. The factors of production earn incomes that lead to the demand for two goods. Students can see who are the winners and losers when going from a closed economy to an open economy. The students are able to predict the consequences and then obtain immediate feedback.

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    File URL: http://www.economicsnetwork.ac.uk/sites/default/files/Ashley/Hamlen%20and%20Hamlen%2C%2011.2.pdf
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    Bibliographic Info

    Article provided by Economics Network, University of Bristol in its journal International Review of Economics Education.

    Volume (Year): 11 (2012)
    Issue (Month): 2 ()
    Pages: 91-101

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    Handle: RePEc:che:ireepp:v:11:y:2012:i:2:p:91-101

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    Postal: University of Bristol, BS8 1HH, United Kingdom
    Fax: +44(0)117 331 4396
    Web page: http://www.economicsnetwork.ac.uk/iree

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    1. Sanford J Grossman & Joseph E Stiglitz, 1997. "On the Impossibility of Informationally Efficient Markets," Levine's Working Paper Archive 1908, David K. Levine.
    2. J. Wilson Mixon, Jr. & Soumaya M. Tohamy, 1999. "The Heckscher-Ohlin Model with variable input coefficients in spreadsheets," Computers in Higher Education Economics Review, Economics Network, University of Bristol, vol. 13(2), pages 4-6.
    3. Soumaya M. Tohamy & J. Wilson Mixon, 2003. "Lessons from the Specific Factors Model of International Trade," The Journal of Economic Education, Taylor & Francis Journals, vol. 34(2), pages 139-150, January.
    4. Bill Hamlen & Kevin Hamlen, 2006. "A Closed System of Production Possibility and Social Welfare," Computers in Higher Education Economics Review, Economics Network, University of Bristol, vol. 18(1), pages 15-18.
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