Nelson, Douglas R. (contributor); … - 2008
flow from i to j is surely influenced by the prices of products in the
other N–2 regions in the world, which themselves …
−
⎛⎞
= ∈
⎜⎟
⎝⎠
(4)
To develop some intuition about our extension, consider the extreme case of a World
with three countries, a large ….
Production value in each country equals consumption value in the World:
Niy
P
tp
xy
j
Sj
Nj
j
iji
Sj
Nj
iji …