Bandyopadhyay, Taradas; Biswas, Tapan - In: The Journal of International Trade & Economic Development 6 (1997) 3, pp. 359-375
In a simple two-sector open economy model with non-shiftable capital, which is akin to the new free market economies of east European countries, this paper shows that, for a certain configuration of capital stocks, a temporary price intervention results in a better allocation of investment. It...