The gains from trade in an specific factor growth model

Fischer, Ronald; Serra, Pablo

dc.creator	Fischer, Ronald
dc.creator	Serra, Pablo
dc.date	2016-05-10
dc.date.accessioned	2019-04-02T14:00:07Z
dc.date.available	2019-04-02T14:00:07Z
dc.identifier	https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/40996
dc.identifier.uri	http://revistaschilenas.uchile.cl/handle/2250/3238
dc.description	This paper uses a dynamic model of trade with specific factors of production to analyze the evolution of an economy that opens to international trade. Each period the allocation of labor is determines by previous period investment. The model cannot adapt instantaneously to free trade conditions, even though they improve welfare. Transition to the free trade steady state is costly and, among all feasible trajectories, those that have the longest adjustment paths are optimal. In fact, fast transitions can lead to losses from trade. On the other hand, if autarkic prices are very different from world prices, fast adjustment is preferable, since adjustment costs can be compensated by the large gains from specialization under trade.	en-US
dc.format	text/html
dc.language	eng
dc.publisher	Departamento de Economía - Facultad de Economía y Negocios, Universidad de Chile.	en-US
dc.relation	https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/40996/43662
dc.source	Estudios de Economía; Vol 23 No 2 (1996): December; pp. 179-199	en-US
dc.source	Estudios de Economía; Vol 23 No 2 (1996): December; pp. 179-199	es-ES
dc.source	0718-5286
dc.source	0304-2758
dc.title	The gains from trade in an specific factor growth model	en-US
dc.title	The gains from trade in an specific factor growth model	es-ES
dc.type	info:eu-repo/semantics/article
dc.type	info:eu-repo/semantics/publishedVersion

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