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Conditions sufficient for factor price equalization within any non-trivial subset of trading countries are provided. The conditions are that (a) the factor endowment ratios of countries in the subset are all bounded by the factors-in-use ratios in an equilibrium of the hypothetical world economy...
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It is argued that the task of describing the optimal vector of commodity taxes is trivialized by the traditional assumption of a price-taking representative agent; that, in particular, the assumption of a representative agent ensures that the null vector is optimal. Copyright © 2007 The...
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