Autarkic Indeterminacy and Trade Determinacy
نویسندگان
چکیده
Most existing evidences for indeterminacy are obtained from analyzing models that do not consider trade. This paper considers an extension of Nishimura and Shimomura (Journal of Economic Theory, 2002) Heckscher-Ohlin framework by removing sector-specific externalities in one country while maintaining all other assumptions previously made by the authors. We show that even though indeterminacy arises under autarky, it can be eliminated when trade takes place with another country exhibiting saddle-path stability. Consequently, support for indeterminacy from calibrating an autarkic framework should be treated with some degree of caution.
منابع مشابه
Frequency of trade and the determinacy of equilibrium paths: logarithmic economies of overlapping generations under certainty
Equilibrium paths in economies of overlapping generations depend on the frequency of trade. In a logarithmic example, determinacy obtains as the frequency of trades tends to infinity or trade occurs in continuous time. If time extends infinitely into the infinite past as well as into the infinite future, in continuous time, all non-stationary equilibrium paths of prices are time-shifts of a sin...
متن کاملDeterminacy and Indeterminacy of Equilibria
This essay discusses work on the determinacy and indeterminacy of equilibrium in models of competitive markets. Determinacy typically refers to situations in which equilibria are finite in number, and local comparative statics can be precisely described. This essay describes basic results on generic determinacy for exchange economies and the general underlying principles, together with various ...
متن کاملThe Variable Determinacy Thesis
This Article proposes a novel technique for characterizing the relative determinacy of legal decision-making. I begin with the observation that the determinacy of legal outcomes varies from context to context within the law. To augment this intuition, I develop a theoretical model of determinate legal decision-making. This model aims to capture the essential features that are typically associat...
متن کاملDeterminacy and Indeterminacy of Games Played on Complete Metric Spaces
Schmidt’s game is a powerful tool for studying properties of certain sets which arise in Diophantine approximation theory, number theory, and dynamics. Recently, many new results have been proven using this game. In this paper we address determinacy and indeterminacy questions regarding Schmidt’s game and its variations, as well as more general games played on complete metric spaces (e.g. fract...
متن کاملGeneric Virtual Determinacy for Stationary Overlapping Generations
We formulate and prove generic virtual determinacy for a class of stationary overlapping-generations models that allows a continuum of differentiated commodities in continuous time. Since that class subsumes a finite list of commodities in discrete time, we prove for many of the leading examples of indeterminacy in the literature there exists a generic (residual) perturbation of preferences tha...
متن کامل