An adverse social welfare effect of a doubly gainful trade
نویسندگان
چکیده
منابع مشابه
Decentralized trade, random utility and the evolution of social welfare
We study decentralized trade processes in general exchange economies and house allocation problems with and without money. The processes are a¤ected by persistent random shocks stemming from agentsmaximization of random utility. By imposing structure on the utility noise term logit distribution, one is able to calculate exactly the stationary distribution of the perturbed Markov process for ...
متن کاملTrade, Migration and Welfare: The Impact of Social Capital
Despite the predictions of standard trade theory, countries in the North are not indifferent between free migration and free trade. Explanations include the redistributive policies of the welfare state (Wellisch and Walz, 1998, this Review). This paper offers an explanation using the concept of social capital and extends the analysis to the South. The movement of people differs from the movemen...
متن کاملAn Analysis of Welfare Effect of Traditional Tariff (Exogenous) and
Welfare effect of tariff for a small country in the case of traditional tariff (exogenous) compared to free trade would decrease the welfare of the country. This paper has shown that the welfare effect of tariff in case of untraditional tariff (endogenous) can be explained by using the specific factors models (Jones) that fundamentally determined by Cournut- Nash Equilibrium system in contrary ...
متن کاملTrade Patterns and Welfare
By employing a model with international trade costs and imperfect competition, in which a domestic firm serves both the domestic market and the foreign market, we show that intraindustry trade compared to intersectoral trade is globally, but not mutually, welfare improving. When also foreign firms become active, competition strengthens but domestic welfare declines, because domestic consumers h...
متن کاملWelfare Reducing Trade and Optimal Trade Policy
This paper shows that free trade reduces the welfare of a small country with unemployment unless the free trade price if the importable falls below the autarky equivalent price. A decline in the price of the importable from the autarky level not only improves the terms of trade but also reduces employment and production in the importable sector. A numerical example illustrates that the autarky ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Development Economics
سال: 2018
ISSN: 0304-3878
DOI: 10.1016/j.jdeveco.2018.03.004