1. Indeterminacy in the free-trade world.
- Author
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Doi, Junko, Iwasa, Kazumichi, and Shimomura, Koji
- Subjects
- *
FREE trade , *INTERNATIONAL trade , *INTERNATIONAL relations , *PUBLIC goods , *ECONOMIC competition , *ECONOMICS - Abstract
We show that indeterminacy arises in a discrete-time competitive two-country dynamic model of international trade in which externalities, imperfect competition, public goods, and government intervention are assumed away. The present model is a standard dynamic trade model in the sense that there is neither an international credit market nor international factor mobility, and these intrinsic features are a source of indeterminacy. Indeterminacy is implied by the condition for the existence of a steady state. [ABSTRACT FROM AUTHOR]
- Published
- 2007
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