Indeterminacy in the free-trade world
We show that indeterminacy arises nadiscrete-time competitive two-country dynamic model of international trade in which externalities, imperfect competition, public goods, and government intervention are assumed away. The present model is a standard dynamic trade model in the sense that there is neither an international credit market nor international factor mobility, and these intrinsic features are a source of indeterminacy. Indeterminacy is implied by the condition for the existence of a steady state.
Year of publication: |
2006-05
|
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Authors: | Doi, Junko ; Iwasa, Kazumichi ; Shimomura, Koji |
Institutions: | Research Institute for Economics and Business Administration, Kobe University |
Saved in:
freely available
Extent: | application/pdf |
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Series: | Discussion Paper Series. - ISSN 1345-2207. |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Number 187 24 pages |
Source: |
Persistent link: https://www.econbiz.de/10005650717
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