Fixed transport costs and international trade

We develop a simple two country model of international trade that assumes that there is a fixed cost of doing international trade. We show that this leads to multiple equilibria that can be Pareto-ranked. We examine the stability properties of these equilibria.

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Year of publication:	2006
Authors:	Laussel, Didier ; Riezman, Raymond
Publisher:	Munich : Center for Economic Studies and ifo Institute (CESifo)

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Series:	CESifo Working Paper ; 1764
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	517022044 [GVK] hdl:10419/25809 [Handle]
Classification:	F1 - Trade ; F11 - Neoclassical Models of Trade
Source:	EconStor

Persistent link: https://www.econbiz.de/10010263950