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| Koji Shimomura and Murray Kemp |
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| ''Trade Between Countries with Radically Different Preferences'' |
| ( 2005, Vol. 6 No.19 ) |
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| 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 |
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| Keywords: preferences |
JEL: F1 - Trade: General
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| Manuscript Received : Oct 20 2005 | | Manuscript Accepted : Oct 31 2005 |
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