For a small open economy with decreasing returns to scale within industries, increasing any factor supply may increase all sector outputs. A necessary and sufficient condition for these seemingly perverse Rybczynski adjustments may even be satisfied for stable equilibria

In this paper the economies of scale arising from the acquisition of costly information and their implications for the existence of a competitive equilibrium are investigated. As is known, the existence of economies in the scale of production undermines the possibility of a competitive...

Do scale economies contribute to our understanding of international trade? Do international trade flows encode information about the extent of scale economies? To answer these questions we examine the large class of general equilibrium theories that imply Helpman-Krugman variants of the Vanek...