The Concepts Underlying the Generalized Theory

  • H. Peter Gray


The purpose of this chapter is to introduce the three concepts that broaden the traditional model and allow it to apply to a wider range of real-world problems. The three concepts are interrelated. Consequently, the order of their introduction is determined by expositional considerations rather than by any measure of the importance of the concepts. The three concepts are: an explicit time dimension; a three-part production function; and the integration into the model of three different types of goods.


Production Function International Trade Demand Curve Period Analysis Intermediate Good 
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  1. This process would correspond with the product cycle, see Raymond Vernon, ‘International Investment and International Trade in the Product Cycle’, Quarterly Journal of Economics 80, (May 1966), pp. 190–207.CrossRefGoogle Scholar
  2. Jacques Drèze emphasizes type 3B goods in ‘Les exportations intra-C.C.E. en 1958 et la position belge’, Recherches économiques de Louvain (1961), pp. 717–38.Google Scholar
  3. 19.
    See Nicholas Kaldor, ‘Market Imperfection and Excess Capacity’, Economica n.s. (1935), pp. 33–50.Google Scholar

Copyright information

© H. Peter Gray 1976

Authors and Affiliations

  • H. Peter Gray
    • 1
  1. 1.Belle MeadUSA

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