The Law of comparative Advantage without Social Utility Functions.

B-Tier
Journal: Review of International Economics
Year: 1998
Volume: 6
Issue: 3
Pages: 401-06

Authors (2)

Shimomura, Koji (Kobe University) Wong, Kar-yiu (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper derives sufficient conditions under which the Law of Comparative Advantage and the General Law of Comparative Advantage are true when the preferences of the trading countries may not be represented by "well-behaved" social utility functions. It shows that in the neoclassical framework with convex technologies, profit maximization and Walrus' Law, the laws of comparative advantage under a natural trade are still valid if either the General Law of Demand or the Weak Axiom of Revealed Preference holds, or if losers are compensated using lump-sum transfers or consumption taxes. Copyright 1998 by Blackwell Publishing Ltd.

Technical Details

RePEc Handle
repec:bla:reviec:v:6:y:1998:i:3:p:401-06
Journal Field
International
Author Count
2
Added to Database
2026-01-29