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A geometry of Specialization

  • Francois, Joseph
  • Nelson, Doug R

Division of labour models have become a standard analytical tool, along with competitive general equilibrium models (Ricardian, HOS, Ricardo-Viner), in public finance, trade, growth, development and macroeconomics. Yet unlike the earlier models, specialization models lack a canonical representation. This is because they are both new and complex, characterized by multiple equilibria, instability and emergent structural properties under parameter transformation. We develop a general framework for such models, illustrating results from current research on specialization models, and explaining why one sub-class of these models is particularly difficult to illustrate easily.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1813.

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Date of creation: Mar 1998
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Handle: RePEc:cpr:ceprdp:1813
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