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Existence of equilibrium in models of international trade with perfect or imperfect competition

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Author Info
Arnold, Lutz G.

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Abstract

Dixit and Norman ("Theory of International Trade", Cambridge: Cambridge University Press, 1980) showed that, under certain conditions, the world economy replicates the equilibrium of the hypothetical integrated economy without national borders in the traditional trade model with perfect competition. Helpman and Krugman ("Market Structure and Foreign Trade. Increasing Returns, Imperfect Competition, and the International Economy", Cambridge, MA: MIT Press, 1985) extended their analysis to settings with imperfectly competitive sectors. This paper derives necessary and sufficient conditions for the existence of free trade equilibria with replication in models with perfect or imperfect competition.

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Paper provided by University of Regensburg, Department of Economics in its series Regensburger Diskussionsbeiträge zur Wirtschaftswissenschaft with number 424.

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Date of creation: 31 May 2007
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Handle: RePEc:bay:rdwiwi:807

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Related research
Keywords: Allgemeines Gleichgewichtsmodell; Außenhandel; Unvollständige Konkurrenz;

Find related papers by JEL classification:
C62 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Existence and Stability Conditions of Equilibrium
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies

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This page was last updated on 2009-11-13.

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