IDEAS home Printed from
   My bibliography  Save this article

Decomposing the gains from trade in the presence of time-consuming consumption


  • Tran-Nam, Binh


We examine the decomposition of the gains from trade when consumption is time consuming in a simple open economy setting. While trade remains welfare improving, the sources of trade gainfulness differ from those in conventional trade models. In particular, the conventionally defined exchange (consumption) and specialisation (production) gains vanish. There are, however, positive gains from time reallocation (away from production toward consumption) and specialisation associated with this time reallocation.

Suggested Citation

  • Tran-Nam, Binh, 2017. "Decomposing the gains from trade in the presence of time-consuming consumption," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 7(1), pages 1-11.
  • Handle: RePEc:gok:ijdcv1:v:7:y:2017:i:1:p:1-11

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Martin, John P. & Neary, J. Peter, 1980. "Variable labour supply and the pure theory of international trade : An empirical note," Journal of International Economics, Elsevier, vol. 10(4), pages 549-559, November.
    2. Binh Tran-Nam, 2012. "An Extended Ricardian Model Incorporating a Consumption Time Constraint," Review of International Economics, Wiley Blackwell, vol. 20(5), pages 1046-1051, November.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Gossen; Becker; Consumption time constraint; Gains from trade; Time reallocation;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory


    Access and download statistics


    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:gok:ijdcv1:v:7:y:2017:i:1:p:1-11. 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: (). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.