VARIABLE RETURNS TO SCALE IN GENERAL EQUILIBRIUM THEORY.
Abstract
The validity of two standard theorems in the pure theory of international trade (the Stolper-Samuelson theorem and the Rybczynski theorem) is examined in a competitive general equilibrium model where external economies and/or diseconomies are introduced. Either theorem may be invalidated when there exist sufficiently strong external economies or if external effects are sufficiently 'biased'. These findings are related to the shape of the community's production-possibilities schedule, which can be 'bowed-in' even in the absence of external economies. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 22, 1965
- Accession Number
- AD0623885
Entities
People
- Ronald W. Jones
Organizations
- Stanford University