An adverse social welfare effect of a doubly gainful trade

A-Tier
Journal: Journal of Development Economics
Year: 2018
Volume: 135
Issue: C
Pages: 77-84

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

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

Abstract

Acknowledging individuals' distaste for low relative income renders trade less appealing when trade is viewed as a technology that integrates economies by merging separate social spheres into one. We define a “trembling trade” as a situation in which gains from trade are overtaken by losses of relative income, with the result that global social welfare is reduced. A constructive example reveals that a “trembling trade” can arise even when trade is doubly gainful in that it increases the income of every individual and narrows the income gap between the trading populations.

Technical Details

RePEc Handle
repec:eee:deveco:v:135:y:2018:i:c:p:77-84
Journal Field
Development
Author Count
4
Added to Database
2026-01-29