If all firms are well informed and rational, it is not possible for a country to be more efficient than all other countries in producing an y particular commodity. For if a country were uniformly more efficient than other countries, it would have an incentive to share its superio r technology...

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...

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 Hicks-Ikema theorem, that a uniform expansion of a trading country's production set must benefit its trading partner if the preferences of the expanding country are homothetic, has been demonstrated under assumptions of the Lerner-Samuelson kind. It is shown here that the theorem remains...

Consider the optimal time path of a tax on capital income, the proceeds of which are transferred to labor in a lump sum. It is known from earlier open-loop formulations that, if the optimal rate of tax converges to a point, it converges to zero, implying that, in the long run, a tax on capital...

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...

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...