Globalization, Trade Adjustment and Gradualism: An Exploratory Note in a Ricardian model with Overlapping Generations
نویسندگان
چکیده
Henry Wan, Jr. and Yinggang Zhou Cornell University May 2005 Abstract A general equilibrium model is set up for the entire trading world with overlapping generations, where the initial sector-specific age distribution of labor makes the impact of trade liberalization beneficial for some and detrimental to others, while allocation efficiency is improved. Under the Paretian Principle that trade reform should do no harm after compensation, analysis is done to both formulate and characterize the 'adjustment at optimal speed' proposal of Bhagwati.
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