Non-competing factor groups and the normative propositions of trade theory
The Walras-Arrow-Debreu-McKenzie model of general equilibrium forms the basis of almost all normative trade theory. In that model, a factor of production might be completely or incompletely immobile between alternative occupations. Whether it ever abandons an initial occupation depends on the cost of moving to each of the alternative occupations. It is not to be expected that, in equilibrium, a factor will receive the same reward in each occupation; non-competitive factor groups will be the rule. It is puzzling then that, in recent years, normative trade theory has developed in complete denial of non-competing groups. It is here shown that the occupational immobility of factors does not endanger any of the well-known normative propositions of the theory of international trade.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Panagariya, Arvind & Krishna, Pravin, 2002. "On necessarily welfare-enhancing free trade areas," Journal of International Economics, Elsevier, vol. 57(2), pages 353-367, August.
- Murray Kemp & Henry Wan, 1986. "The comparison of second-best equilibria: The case of customs unions," Journal of Economics, Springer, vol. 5(1), pages 161-167, December.
- Kemp, Murray C & Wan, Henry Y, Jr, 1972. "The Gains from Free Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 509-22, October.
- Kemp, Murray C. & Wan, Henry Jr., 1976. "An elementary proposition concerning the formation of customs unions," Journal of International Economics, Elsevier, vol. 6(1), pages 95-97, February.
- Grandmont, J. M. & McFadden, D., 1972. "A technical note on classical gains from trade," Journal of International Economics, Elsevier, vol. 2(2), pages 109-125, May.
When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:17:y:2008:i:3:p:388-390. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.