A General Equilibrium Model of Production Under Uncertainty

  • Raveendra N. Batra


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.


International Trade General Equilibrium Model Factor Endowment Pure Theory Factor Supply 
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Copyright information

© Raveendra N. Batra 1975

Authors and Affiliations

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

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