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Autarkic indeterminacy and trade determinacy

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  • Nicholas C. S. Sim
  • Kong‐Weng Ho

Abstract

We extend the model of Nishimura and Shimomura (2002) to consider a two‐country framework where under autarky indeterminacy arises in one country but determinacy in the other, and show that indeterminacy could be eliminated when trade takes place between the two.

Suggested Citation

  • Nicholas C. S. Sim & Kong‐Weng Ho, 2007. "Autarkic indeterminacy and trade determinacy," International Journal of Economic Theory, The International Society for Economic Theory, vol. 3(4), pages 315-328, December.
    • Handle: RePEc:bla:ijethy:v:3:y:2007:i:4:p:315-328
    DOI: 10.1111/j.1742-7363.2007.00062.x
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    References listed on IDEAS

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    1. Benhabib Jess & Farmer Roger E. A., 1994. "Indeterminacy and Increasing Returns," Journal of Economic Theory, Elsevier, vol. 63(1), pages 19-41, June.
    2. Jess Benhabib & Qinglai Meng & Kazuo Nishimura, 2012. "Indeterminacy Under Constant Returns to Scale in Multisector Economies," Springer Books, in: John Stachurski & Alain Venditti & Makoto Yano (ed.), Nonlinear Dynamics in Equilibrium Models, edition 127, chapter 0, pages 403-412, Springer.
    3. Benhabib, Jess & Farmer, Roger E. A., 1996. "Indeterminacy and sector-specific externalities," Journal of Monetary Economics, Elsevier, vol. 37(3), pages 421-443, June.
    4. Jess Benhabib & Kazuo Nishimura, 2012. "Indeterminacy and Sunspots with Constant Returns," Springer Books, in: John Stachurski & Alain Venditti & Makoto Yano (ed.), Nonlinear Dynamics in Equilibrium Models, edition 127, chapter 0, pages 311-346, Springer.
    5. Kazuo Nishimura & Alain Venditti & Makoto Yano, 2006. "Endogenous Fluctuations In Two‐Country Models," The Japanese Economic Review, Japanese Economic Association, vol. 57(4), pages 516-532, December.
    6. Kazuo Nishimura & Koji Shimomura, 2012. "Trade and Indeterminacy in a Dynamic General Equilibrium Model," Springer Books, in: John Stachurski & Alain Venditti & Makoto Yano (ed.), Nonlinear Dynamics in Equilibrium Models, edition 127, chapter 0, pages 347-361, Springer.
    7. Kazuo Nishimura & Makoto Yano, 2012. "Interlinkage in the Endogenous Real Business Cycles of International Economies," Springer Books, in: John Stachurski & Alain Venditti & Makoto Yano (ed.), Nonlinear Dynamics in Equilibrium Models, edition 127, chapter 0, pages 97-124, Springer.
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    Citations

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    Cited by:

    1. Francisco Cabo & Guiomar Martín-Herrán & María Pilar Martín-Herrán, 2014. "Can sustained growth be attained through trading exhaustible resources for foreign research?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(2), pages 267-298, March.
    2. Hu, Yunfang & Mino, Kazuo, 2013. "Trade structure and belief-driven fluctuations in a global economy," Journal of International Economics, Elsevier, vol. 90(2), pages 414-424.
    3. Boucekkine, Raouf & Kazuo, Nishimura & Venditti, Alain, 2017. "Introduction to international financial markets and banking systems crises," Journal of Mathematical Economics, Elsevier, vol. 68(C), pages 87-91.
    4. Yunfang Hu & Kazuo Mino, 2011. "Globalization and Volatility under Alternative Trade Structures," KIER Working Papers 791, Kyoto University, Institute of Economic Research.
    5. Kazuo Nishimura & Alain Venditti & Makoto Yano, 2010. "Expectation‐driven fluctuations and welfare loss under free trade in two‐country models," International Journal of Economic Theory, The International Society for Economic Theory, vol. 6(1), pages 97-125, March.
    6. Antoine Le Riche, 2014. "Macroeconomic Volatility and Trade in OLG Economies," AMSE Working Papers 1446, Aix-Marseille School of Economics, France, revised Nov 2014.
    7. Antoine Le Riche, 2016. "Macroeconomic Volatility and Trade in OLG Economies," Working Papers halshs-01079773, HAL.
    8. Antoine Le Riche, 2017. "Macroeconomic volatility and trade in OLG economies," International Journal of Economic Theory, The International Society for Economic Theory, vol. 13(4), pages 401-425, December.
    9. Le Riche, Antoine & Lloyd-Braga, Teresa & Modesto, Leonor, 2022. "Intra-industry trade, involuntary unemployment and macroeconomic stability," Journal of Mathematical Economics, Elsevier, vol. 99(C).

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    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F00 - International Economics - - General - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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