Description
CAMBRIDGE UNIVERSITY PRESS Theory Of International Trade : A Dual General Equilibrium Approach by Avinash Dixit , Victor Norman
This book expounds trade theory emphasizing that a trading equilibrium is general rather than partial, and is often best modelled using dual or envelope functions. This yields a compact treatment of standard theory, clarifies some errors and confusions, and produces some new departures. In particular, the book i gives unified treatments of comparative statics and welfare, ii sheds new light on the factor-price equalization issue, iii treats the modern specific-factor model in parallel with the usual Heckscher-Ohlin one, iv analyses the balance of payments in general equilibrium with flexible and fixed prices, v studies imperfect competition and intra-industry trade.show more