A Decomposition of Ricardian Trade Gains under External Economies of Scale
Although the one-factor Ricardian trade model with external economies of scale plays a significant role for the understanding of important trade issues under increasing returns, it lacks a compelling graphical representation. We propose a convincing graphical exposition that uses both the PPF and a labor market graph.
|Date of creation:||Mar 2010|
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|Contact details of provider:|| Web page: http://www.econ.kobe-u.ac.jp|
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- Richard Arena, 2002. "Introduction," Revue d'économie politique, Dalloz, vol. 112(5), pages 627-633.
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