This paper derives sufficient conditions under which the Law of Comparative Advantage and the General Law of Comparative Advantage are true when the preferences of the trading countries may not be represented by "well-behaved" social utility functions. It shows that in the neoclassical framework...

Much of the comparative statics of trade theory rests on the unrealistic assumption that in each trading country all households are alike or behave collectively as though they are alike. In the present paper the authors show that two well-known comparative statical propositions are highly...

The paper develops a model of international trade with increasing returns to scale by taking into account the possibility of cooperation among agents in an egalitarian economy. It is shown that each country gains from trade in a trading world in which there are arbitrary numbers of...

This paper argues that in a general-equilibrium context, it is not sensible for oligopolistic (and monopolistically competitive) firms to maximize profit, because the outcome would be sensitive to the choice of the numeraire. The natural objective of these firms would be to maximize the utility...

It is shown by means of an overlapping-generations (OLG) example that free international trade may be both deterministically chaotic and gainful in the sense of Pareto to a participating country. Copyright 1999 by Blackwell Publishing Ltd.

J. S. Mill suggested that the destruction of old preferences and their replacement by new are among the greatest benefits imparted by free trade. However, Mill's argument relied on a possibly controversial ethical judgment. The present note approaches the question posed by Mill with only the...

This paper proves that in a multicountry general-equilibrium model of international trade with local public goods, free trade is beneficial if the governments in the trading world behave strategically with respect to the provision of public goods. Copyright © 2007 The Author; Journal...

This study provides a simple, many-industry model of trade which emphasizes the interaction between cross-country technical heterogeneity (i.e., a Ricardian aspect) and monopolistic competition among producers of differentiated products (i.e., a Chamberlinian aspect) as determinants of trade...

There is no generally accepted definition of internationalization or globalization. The present paper offers three alternative definitions, in terms of (i) an enlargement of the set of trading countries, (ii) an enlargement of the set of traded commodities, or (iii) the international sharing of...

This paper presents a simple overlapping-generations model of a small open economy with child-parent externality that exhibits chaotic equilibrium dynamics. Copyright 1999 by Blackwell Publishing Ltd.