Cremers, Emily T. - Institut for Miljø og Erhvervsøkonomi, Syddansk … - 2008
The static trade literature has concluded that, absent distortions and bystanders, transfer induced movements in the … terms of trade cannot be large enough (under Walrasian stability) to produce the transfer paradox. Dynamic one-sector models … allows for both static and intertemporal terms of trade effects -commodity trade can produce a steady state transfer paradox …