By Murray C. Kemp, Hironobu Nakagawa, Tatsuya Uchida (eds.)
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Additional resources for Positive and Normative Analysis in International Economics: Essays in Honour of Hiroshi Ohta
Sample text
In deriving that proposition, it will be assumed that the collective governments of the set of PGAs, each PGA with its own system of Scitovsky lump-sum transfers, play a Cournot–Nash game in their (newly-localized) public goods with the remaining (non-member) countries maintaining their net vectors of produced public goods at their autarchic levels. Moreover the game is played in two stages: in stage 1, the collective governments choose the vectors of public goods to be provided and the non-member governments maintain their autarchic vectors; and, in stage 2, the competitive households and firms of all countries determine the prices both of private and public goods.
Translated from the edition of 1926 by W. Jaffé as Elements of Pure Economics (London: Richard D. Irwin). Wicksell, K. (1896) Finnanztheoretische Untersuchungg (Jena: Gustav Fisher). A. T. Peacock (eds), Classics in the Theory of Public Finance (London: Macmillan) (1958), pp. 72−118. 1 Introduction The present inquiry revisits my past endeavours to reveal certain moral scientific aspects of the well-known Stolper–Samuelson theorem and the related less well-known proposal to ‘bribe’ for free trade.
The former may also be named ‘cost-reducing innovations’ in the sense that they take place through the discovery of new processes to produce the old products at lower costs. By contrast, the latter may be called ‘quality-improving innovations’ since they occur through the creation of new, higher-quality products. Both categories of innovations are, of course, important as engines of economic development, but their implications for economic welfare can vary enormously from time to time and from place to place.