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Endowment Changes in Economic Equilibrium: The Dutch Disease Revisited

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This paper is concerned with an economic phenomenon known as ‘Dutch Disease’: an economy’s manufacturing sector declines as a result of a resource boom. We look into related supply-side aspects which appear to be significant if seen from the viewpoint of microeconomic general equilibrium theory. Several comparative-statics results will be presented for the case of a small open economy. We also briefly discuss welfare implications in terms of changes in income distribution and GNP.


  • Factor Price
  • Full Employment
  • Small Open Economy
  • Output Price
  • Resource Input

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© 1993 Springer-Verlag Berlin · Heidelberg

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Pfingsten, A., Wolff, R. (1993). Endowment Changes in Economic Equilibrium: The Dutch Disease Revisited. In: Diewert, W.E., Spremann, K., Stehling, F. (eds) Mathematical Modelling in Economics. Springer, Berlin, Heidelberg.

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-78510-8

  • Online ISBN: 978-3-642-78508-5

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