Variable Returns to Scale, Non-Uniqueness of Equilibrium and the Gains from International Trade

S-Tier
Journal: Review of Economic Studies
Year: 1991
Volume: 58
Issue: 4
Pages: 807-816

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

Existing conditions for gainful trade under conditions of variable returns to scale are merely sufficient. Basing ourselves on the possible non-uniqueness of the production equilibrium under variable returns, we develop a globally valid necessary and sufficient condition for gainful trade. In particular, it is shown that trade may be gainful without changes in product prices, even if trade results in a loss of productivity.

Technical Details

RePEc Handle
repec:oup:restud:v:58:y:1991:i:4:p:807-816.
Journal Field
General
Author Count
2
Added to Database
2026-01-25