haku: @indexterm RATE OF RETURN / yhteensä: 621
viite: 125 / 621
| Tekijä: | Young, L. |
| Otsikko: | Hechscher-Ohlin trade theory with variable returns to scale |
| Lehti: | Journal of International Economics
1991 : AUG, VOL. 31:1-2, p. 183-190 |
| Asiasana: | MACROECONOMIC MODELS ECONOMIC THEORY TRADE RATE OF RETURN PRICES QUANTITATIVE TECHNIQUES |
| Kieli: | eng |
| Tiivistelmä: | The propositions of the Heckscher-Ohlin model that assume perfect competition and constant returns to scale are extended to technologies that yield determinate outcomes under perfect competition with free entry. Countries then respond to commodity price changes as if their aggregate production sets were convex. The need for an approximation can be bypassed using one of the mathematical techniques - measure theory or non-standard analysis - providing formal models of agents that are "small" relative to the market. If industry output were small compared with the optimal scale, then we would not expect firms to behave competitively anyway. |
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