A Decomposition of Ricardian Trade Gains under External Economies of Scale
AbstractAlthough the one-factor Ricardian trade model with external economies of scale plays a significant role for the understanding of important trade issues under increasing returns, it lacks a compelling graphical representation. We propose a convincing graphical exposition that uses both the PPF and a labor market graph.
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Bibliographic InfoPaper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 1001.
Date of creation: Mar 2010
Date of revision:
Trade Gains; Ricardian Trade Model; External Economies of Scale; Graph of the Labor Market;
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- F10 - International Economics - - Trade - - - General
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