Abstract
Standard neoclassical trade model (2 × 2 factor model ). Two factors of production, K and L, that are mobile between two output producing sectors A and B. Production functions are neoclassical (i.e. the production set is closed, convex, contains zero, has free disposal, and its intersection with the positive orthant is empty) and exhibit constant returns to scale. The economy has incomplete specialization when both goods are produced.
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Mas-Colell, Whinston, and Green (1995) or Bhagwati, Panagariya, and Srinivasan (1998).
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© 2010 Springer-Verlag Berlin Heidelberg
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Sydsæter, K., Strøm, A., Berck, P. (2010). Topics from trade theory. In: Economists’ Mathematical Manual. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-28518-2_27
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DOI: https://doi.org/10.1007/978-3-540-28518-2_27
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-26088-2
Online ISBN: 978-3-540-28518-2
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