Samuelson (1939)- The Gains from International Trade

Samuelson (1939)- The Gains from International Trade - The...

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The Gains from International Trade Paul Samuelson (1939) Samuelson, Paul. 1939. “The Gains from International Trade.” The Canadian Journal of Economics and Political Science / Revue Canadienne d’Economique et de Science Politique. 5(2): 195-205. Thesis of Paper: Trade is better than no trade The Introduction of outside prices (market) allow for greater individual consumption w/ less production input. Part 1: Many new assumptions have been added to Ricardo’s model over the years but they do not lead to equilibrium Part 2: Introductory Assumptions: 1. Only 1 Economy exists 2. Individual-Level Analysis 3. Constant Rate of Technology 4. Measures Production Output as a Function of Input 5. Commodities Produced and Consumed in Domestic Market will be equivalent 6. Differential of Factors of Production (Land, Labor, Capital?) is not constant across factors (for a single individual) 7. Yet, different Individuals are “equally Substitutable” 8. Supply of: a. Commodities b. Inputs (of Production?) c. And Productive Services (What is this?) Is a function of “various economic prices” 9. Constant Return between all factors allows for perfect competition in
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This note was uploaded on 02/03/2012 for the course POLS 5308 taught by Professor Biglaiser during the Spring '11 term at Texas Tech.

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Samuelson (1939)- The Gains from International Trade - The...

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