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A General Equilibrium Model of Production Under Uncertainty

  • Raveendra N. Batra

Abstract

The modern deterministic theory of international trade has been built upon the salient characteristics of the two-sector, two-factor, general equilibrium model of production. Therefore, the prerequisite to the development of the stochastic theory of international trade is the formulation of a two-by-two general equilibrium model, which takes into account the random nature of the economic environment. This is the task assigned to this chapter.* In pursuit of this goal, we draw extensively on the analytical tools developed in the previous chapter.

Keywords

International Trade General Equilibrium Model Factor Endowment Pure Theory Factor Supply 
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References

  1. [1]
    Batra, R. N., Studies in the Pure Theory of International Trade( London: Macmillan, 1973 ).Google Scholar
  2. [2]
    Batra, R. N.,‘Resource Allocation in a General Equilibrium Model of Production Under Uncertainty’, Journal of Economic Theory8 (May 1974) 50–63.CrossRefGoogle Scholar
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    Magee, S. P., ‘Factor Market Distortions, Production, and Trade: A Survey’, Oxford Economic Papers, 25 (Mar 1973) 1–42.Google Scholar
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    Rybczynski, T. N., ‘Factor Endowments and Relative Commodity Prices’, Economica, 22 (Nov 1955) 336–41.CrossRefGoogle Scholar
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    Samuelson, P. A., ‘International Factor Price Equalisation Once Again’, Economic Journal, 59 (June 1949) 181–97.CrossRefGoogle Scholar
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    Stolper, W. F., and Samuelson, P. A., ‘Protection and Real Wages’, Review of Economic Studies, 9 (Nov 1941) 58–73. Reprinted in H. S. Ellis and L. A. Metzler (eds.), Readings in the Theory of International Trade( Philadelphia: Balkiston, 1949 ) 333–57.CrossRefGoogle Scholar

Copyright information

© Raveendra N. Batra 1975

Authors and Affiliations

  • Raveendra N. Batra
    • 1
  1. 1.Southern Methodist UniversityUSA

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