The concept of factor intensity has played a key role in the development of international trade theory. The factor … forefront of recent developments in trade theory, e.g., quality differences in an intra-industry setting, increasing returns to …

eighties. Recommendations of economic theory towards coordination of macropolicy at a supranational level, taken up as a … mainly based on game theory. Although the theoretical base for these arguments is widely accepted, the resulting policy …. But at the same time the need for cooperation among souvereign governments is stressed in the fields of international …

is assumed to be a quasi-fixed factor. Capital allocation is treated as an issue in investment theory, thus endogeniz …