IDEAS home Printed from https://ideas.repec.org/a/emx/esteco/v8y1993i1p57-63.html
   My bibliography  Save this article

Effects of growth on relative prices in a two-good n-country model

Author

Listed:
  • Sérgio Ribeiro da Costa Welang

    (Fundação Getúlio Vargas)

Abstract

This paper analyses the effect of an increase of the enodwment in a two-good n-country model. It is shown that the endowment of good one can go up and the price of the same good relative to good two can also increase. However, this "perverse" effect cannot occur in both goods if the economy is at a tatonnement stable equilibrium. This is a new restriction in the form of the equilibrium manifold of an exchange economy. It is also shown that this "double perversity" is the case with normal goods when the equilibrium is unstable.

Suggested Citation

  • Sérgio Ribeiro da Costa Welang, 1993. "Effects of growth on relative prices in a two-good n-country model," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 8(1), pages 57-63.
  • Handle: RePEc:emx:esteco:v:8:y:1993:i:1:p:57-63
    as

    Download full text from publisher

    File URL: https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/293/296
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Majumdar, Mukul & Mitra, Tapan, 1985. "A result on the transfer problem in international trade theory," Journal of International Economics, Elsevier, vol. 19(1-2), pages 161-170, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ram Sewak Dubey & Minwook Kang, 2019. "Transfer paradox in a stable equilibrium," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 259-269, December.
    2. Demuynck, Thomas & Rock, Bram De & Ginsburgh, Victor, 2016. "The transfer paradox in welfare space," Journal of Mathematical Economics, Elsevier, vol. 62(C), pages 1-4.
    3. Emily T. Cremers & Partha Sen, 2009. "Transfers, the terms of trade, and capital accumulation," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(4), pages 1599-1616, November.
    4. Emily T. Cremers, 2008. "Transfers, the Terms of Trade and Capital Accumulation," DEGIT Conference Papers c013_018, DEGIT, Dynamics, Economic Growth, and International Trade.
    5. Sergio Turner, 2006. "How much trade does the transfer paradox require? The threshold computed," Working Papers 2006-02, Brown University, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:emx:esteco:v:8:y:1993:i:1:p:57-63. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ximena Varela (email available below). General contact details of provider: https://edirc.repec.org/data/cecolmx.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.