Fiscal Policy, Specialization, and Trade in the Two-Sector Model
The Return of Ricardo
Bibliographic Data
| ID | 10182087 |
|---|---|
| Authors | Marianne Baxter (corresponding author) |
| Year | 1992 |
| Volume | 100 |
| Issue | 4 |
| Pages | 713-744 |
| Publication date | 1992-08-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/261837 |
| OpenAlex | W2013743907 |
| Language | EN |
| Citations received | 7 |
| References cited | 5 |
This paper develops a two-sector neoclassical model of international trade with endogenous capital accumulation and intertemporal optimization. In contrast to the traditional "2 x 2" model, there is a Ricardian implication that countries specialize according to comparative advantage. Consequently, the theory predicts that government expenditure policies are unlikely to affect the established pattern of specialization and trade, but that changes in tax policies can result in a dramatic reorganization of world production. Further, the dynamic 2 x 2 x 2 model can explain many of the salient features of international trade that are problematic for the standard Heckscher-Ohlin-Samuelson model. Copyright 1992 by University of Chicago Press
Comparative advantage · Economics · General equilibrium theory · International economics · International trade · Macroeconomics · Salient · Economic Growth and Productivity · Economic theories and models · Economic Theory and Policy
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| Unique citing works | 7 |
|---|---|
| Citations per year | 0,29 |
| Citation span | 2002 - 2023 (22) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 7 |