Inframarginal Approach to Trade Theoryn

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Overview

Inframarginal analysis represents a methodology that extends marginal analysis, using non-classical mathematical programming, in efforts to investigate corner solutions and indivisibilities. As such this approach has been used to reintroduce classical insights regarding the division of labor and economic organization to the mainstream of economic inquiry. One of the most prolific and useful relevant applications of inframarginal analysis concerns the area of international trade theory. The ensuing field of study has attracted considerable — and rapidly expanding — interest in recent years. Yet, little has been done by way of organizing the accumulated knowledge in a single volume. This book fills that gap by collecting key articles that mark distinct stages in the evolution of research in the area of inframarginal applications to trade theory. In this context the volume represents an excellent introduction of this novel and exciting field of study to the new researcher, and an invaluable source of reference to those seasoned in inframarginal applications to trade theory.
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Product Details

Table of Contents

1 Division of labor and corner solutions in positive trade theory 3
2 Economics and biology : specialization and speciation 19
3 Substitution and division of labour 29
4 Trade and insurance with moral hazard 53
5 Trade and insurance with imperfectly observed outcomes 75
6 An inframarginal analysis of the Ricardian model 87
7 A Ricardian model with endogenous comparative advantage and endogenous trade policy regimes 109
8 A general-equilibrium re-appraisal of the Stolper-Samuelson theorem 131
9 A Ricardo model with economics of scale 153
10 Pattern of trade and economic development in a model of monopolistic competition 185
11 Market led industrialization and globalization 223
12 Specialization and product diversity 249
13 Endogenous vs. exogenous comparative advantage and economics of specialization vs. economies of scale 261
14 A new theory of demand and supply and emergence of international trade from domestic trade 291
15 Walrasian equilibrium computation, network formation, and the Wen theorem 325
16 Globalization, dual economy, and economic development 349
17 Endogenous structure of the division of labor, endogenous trade policy regime, and a dual structure in economic development 383
18 A microeconomic mechanism for economic growth 409
19 Specialization and a new approach to economic organization and growth 437
20 Specialization, information, and growth : a sequential equilibrium analysis 447
21 Evolution in division of labor and macroeconomic policies 475
22 Division of labor, money and economic progress 491
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