The idea that a final product (the pin) is made of a certain number of components combined in fixed proportions and that a worker can have a comparative advantage in producing one component relative to his fellow workers is developed. We investigate efficient allocations of worker to tasks and...

In a two good, two factor small open economy with neoclassical production functions, we investigate conditions for Giffenness of imports with respect to the price of the imported good. Of interest is the shape of the consumption-trade frontier (the locus of points chosen as world prices vary)...

The theory of the location of the firm is characterized by a number of classic analyses. Each analysis has been concerned with developing a particular property of equilibrium location of the firm, in general, for quite different models of markets. However, there is a consistent conceptual...

Corresponding to current national wealth as discounted future optimal consumption (Weitzman [1976]) we observe current national wealth to be the value of net accumulated stocks of capital. It follows that NNP can be interpreted as interest on national wealth. A constant value of wealth implies...

This paper is in one sense the analysis of a particular case of the Hadley and Kemp model (described in the paper). We shall focus on two region or country trade with two orthodox commodities plus a produced transport commodity. We will observe that balance of payments disequilibrium is a...

We contrast the supply condition governing the rate of extraction of durable exhaustible resources such as gold with rates of extraction of non-durable exhaustible resources such as oil. In two simple general equilibrium models, Hotelling's rule governs supply for non-durable resources, but a...

Along dynamically efficient paths of exhaustible resources extraction Hotelling rent and economic depreciation (with a negative sign) of the stock are equal. We make use of this in analyzing current practices in national income accounting. We indicate that placing Hotelling rent on the income...

Hoover (1937) developed a model where he showed a profit-maximizing monopolist selling in a spatially-defined market would charge different mill prices to different spatially-defined consumers. In particular, the mill price to a consumer is a decreasing function of the distance that consumer is...

The static model of efficient resource allocation in an urban area developed by Mills, and by Hartwick and Hartwick, is recast as a dynamic model within the recursive decision framework of Day. In any period, resources are efficiently allocated to production on land not occupied by profitable...

We introduce a patent (prize) which induces entry at a level which satisfies the basic condition of optimality with respect to the "size" of the race (a second best patent). We observe in an example that the resulting equilibrium is very close to the first best optimal. The approach of the...