This paper employs a global general equilibrium framework and sensitivity analysis to examine why it is that shocks in one country apprear to transmit to comparatively small changes in real factor rewards in its trading partners.

Uzawa (1968) first introduced a simple and appealing method for reducing problems with variable rates of time preference to single-state systems by transforming the time scale from t to (delta's symbol), a utility discount factor. The purpose of this paper is to show that Uzawa's transformation...