Applied general-equilibrium (AGE) models have often made compromises to circumvent difficult modeling problems. One of these is avoiding endogenous zeros, ruling out important questions. Traditional perfect competition models: when do technologies or trade links switch from active to inactive or...

Applied general-equilibrium (AGE) models have often made compromises to circumvent difficult modeling problems. One of these is avoiding endogenous zeros, ruling out important questions. Traditional perfect competition models: when do technologies or trade links switch from active to inactive or...

Frontmatter -- Contents -- Preface -- 1. Introduction -- 2. Some related literature -- 3. An endowment model of regional trade: the long run -- 4. An endowment model of regional trade: the short run -- 5. Regional trade with increasing returns to scale -- 6. Policy implications -- APPENDIX A. An...