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Koji Shimomura and Murray Kemp
 
''Trade Between Countries with Radically Different Preferences''
( 2005, Vol. 6 No.19 )
 
 
We examine the role of radical international differences in preferences in determining patterns of international trade, given that the trading countries share a common technology and identical factor endowment ratios. It is characteristic of our model that the equilibrium autarkic commodity price ratios are unique and negative and that there is a unique positive equilibrium free-trade price ratio, implying that the positive equilibrium free-trade price ratio is not bounded by the equilibrium autarkic price ratios. This finding contrasts sharply with the familiar Torrens-Ricardo and Heckscher-Ohlin propositions
 
 
Keywords: preferences
JEL: F1 - Trade: General
 
Manuscript Received : Oct 20 2005 Manuscript Accepted : Oct 31 2005

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