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A Non-Neoclassical General Equilibrium Trade Model Implemented for Quebec

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  • Tim Hazledine

Abstract

A general equilibrium model of changes in tariffs is developed. The neoclassical 'law-of-one-price' does not hold in the international markets for manufactured good; it is replaced with a model of market behaviour where goods are generally heterogeneous. This model is consistent with intra-industry trade and other empirical findings. The model is tested on data on the Quebec economy in 1974.

Suggested Citation

  • Tim Hazledine, 1980. "A Non-Neoclassical General Equilibrium Trade Model Implemented for Quebec," Working Paper 381, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:381
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