Analysis of linear trade models and relation to scale economies

AUTOR(ES)

Gomory, Ralph E.

FONTE

The National Academy of Sciences of the USA

RESUMO

We discuss linear Ricardo models with a range of parameters. We show that the exact boundary of the region of equilibria of these models is obtained by solving a simple integer programming problem. We show that there is also an exact correspondence between many of the equilibria resulting from families of linear models and the multiple equilibria of economies of scale models.

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