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Impoverishing Technical And Preferential Improvements

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  • Geoffrey Fishburn
  • Murray C. Kemp

Abstract

. Edgeworth showed that a free‐trading country might be impoverished by its own technical improvements if they are confined to the export industry and if no good is inferior in consumption. More recently it has been shown that improvements confined to the country's import competing industry can never be impoverishing if, in that country, no commodity is inferior in consumption. However, in all available proofs of these propositions, it has been assumed that for each country there exists an autarkic equilibrium. It will be shown that, without that assumption, the second proposition must be severely qualified.

Suggested Citation

  • Geoffrey Fishburn & Murray C. Kemp, 2007. "Impoverishing Technical And Preferential Improvements," Pacific Economic Review, Wiley Blackwell, vol. 12(2), pages 205-212, May.
    • Handle: RePEc:bla:pacecr:v:12:y:2007:i:2:p:205-212
    DOI: 10.1111/j.1468-0106.2007.00349.x
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    Cited by:

    1. Masayuki Okawa, 2009. "Technical Improvements and Welfare under International Duopoly," Review of International Economics, Wiley Blackwell, vol. 17(5), pages 1001-1008, November.

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