This paper explores the implications for international monetary economics of recent work on macroeconomic models of temporary equilibrium with rationing. A model of a small open economy is presented, which, though fully consistent in the long run with the monetary approach to the balance of...

This paper presents a general framework for comparing the effects of tariffs,quotas and VERS (voluntary export restraints) both with and without international capital mobility. Expressions for the shadow price of foreign exchange and the shadow price of capital under each type of trade...

This paper introduces the concepts of direct and indirect factor trade utility functions and uses them to derive Marshallian and Hicksian factor content functions, which express the quantities of factors of production embodied in net imports as functions of the exogenous variables facing the...

This paper adopts a new approach to the problem of generalizing the properties of the two-by-two Heckscher-Ohlin model, asking whether we can obtain results which hold in very general models for dichotomous categories of commodities and factors. Using duality theory, some results of this kind...

Previous writers have shown that variable labour supply may lead to perverse price output responses in the two-sector Heckscher-Ohlin model. This note attempts to assess the empirical likelihood, as opposed to the theoretical possibility, of such perversities. Using a range of plausible...

This paper presents a simple model of a small open economy which is open to both commodity trade and foreign investment of a sector-specific kind, and which exhibits the phenomenon of ‘cross-hauling’, or reverse flows of internationally mobile capital in two different sectors. The model,...

This paper examines the behavior of a small open economy facing perfectly elastic supply curves for some of its productive factors. In particular, the paper derives some comparative statics properties of such economies, compares them with the properties of otherwise identical economies in which...

This paper explores the implications for international monetary economics of recent work on macroeconomic models of temporary equilibrium with rationing. A model of a small open economy is presented, which, though fully consistent in the long run with the monetary approach to the balance of...

Empirical evidence strongly suggests that R&D increases a firm's “absorptive capacity” (its ability to absorb spillovers from other firms) as well as contributing directly to profitability. We explore the theoretical implications of this. We specify a general model of the absorptive capacity...

We show that the effects of tariff changes on welfare and import volume are fully characterised by their effects on the generalised mean and variance of the tariff distribution, implying two “cones of liberalisation” in commodity price space. Because welfare is negatively but import volume...