Transfers, Non-Traded Goods, and Unemployment: An Analysis of the Keynes – Ohlin Debate
In the famous debate between Keynes and Ohlin on the transfer problem, the interaction between non-traded goods and unemployment complicates the analysis considerably. We analyze these issues using four different models to conclude that Keynes’s concern regarding the large burden imposed on Germany was justified. Simultaneously, we show that Ohlin’s presumption that a transfer does not affect the donor’s terms-of-trade either favourably or unfavourably was also justified. Moreover, Ohlin was also right in asserting that a transfer tends to lower the price of non-traded goods for the donor and raise them for the recipient.
|Date of creation:||2005|
|Contact details of provider:|| Postal: Poschingerstrasse 5, 81679 Munich|
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
More information through EDIRC
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.:
- Kemp, Murray C & Kojima, Shoichi, 1985. "Tied Aid and the Paradoxes of Donor-Enrichment and Recipient-Impoverishment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(3), pages 721-729, October.
- Murray C. Kemp & Koji Shimomura, 2003.
"A Theory of Involuntary Unrequited International Transfers,"
Journal of Political Economy,
University of Chicago Press, vol. 111(3), pages 686-715, June.
- Murray C. Kemp & Koji Shimomura, 2002. "A Theory of Voluntary Unrequited International Transfers," The Japanese Economic Review, Japanese Economic Association, vol. 53(3), pages 290-300.
- I. A. McDougall, 1965. "Non-Traded Goods and the Transfer Problem," Review of Economic Studies, Oxford University Press, vol. 32(1), pages 67-81.
- Gale, David, 1974. "Exchange equilibrium and coalitions : An example," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 63-66, March.
- P. A. Samuelson, 1970. "On the Trail of Conventional Beliefs About the Transfer Problem," Working papers 54, Massachusetts Institute of Technology (MIT), Department of Economics.
- Brakman,Steven & Marrewijk,Charles van, 1998.
"The Economics of International Transfers,"
Cambridge University Press, number 9780521572149, May.
- Hamid Beladi, 1990. "Unemployment and immiserizing transfer," Journal of Economics, Springer, vol. 52(3), pages 253-265, October.
- Schweinberger, A G, 1990. "On the Welfare Effects of Tied Aid," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 457-462, May.
- Jones, Ronald W, 1985. "Income Effects and Paradoxes in the Theory of International Trade," Economic Journal, Royal Economic Society, vol. 95(378), pages 330-344, June.
- Bhaduri, Amit & Skarstein, Rune, 1996. "Short-Period Macroeconomic Aspects of Foreign Aid," Cambridge Journal of Economics, Oxford University Press, vol. 20(2), pages 195-206, March.
- Jones, Ronald W., 1975. "Presumption and the transfer problem," Journal of International Economics, Elsevier, vol. 5(3), pages 263-274, August.
- Chichilnisky, Graciela, 1980. "Basic goods, the effects of commodity transfers and the international economic order," Journal of Development Economics, Elsevier, vol. 7(4), pages 505-519, December.
- Johnson, Harry G, 1976. "Notes on the Classical Transfer Problem," The Manchester School of Economic & Social Studies, University of Manchester, vol. 44(3), pages 211-219, September.
- Bhagwati, Jagdish N & Brecher, Richard A & Hatta, Tatsuo, 1983. "The Generalized Theory of Transfers and Welfare: Bilateral Transfers in a Multilateral World," American Economic Review, American Economic Association, vol. 73(4), pages 606-618, September.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_1588. 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: (Klaus Wohlrabe)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.