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Some Refinements of the Orthodox Theory

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International Economics

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Abstract

Explicitly or implicitly, all the theoretical models examined so far, have a common set of assumptions: perfect competition, the rigid supply of productive factors, absence of intermediate goods, absence of transport costs, certainty, absence of illegal trade (such as smuggling), and so on. These are undoubtedly assumptions which do not correspond to reality, so that it is legitimate to ask what happens when they are dropped. In this chapter we shall be concerned with the introduction of those elements which can be dealt with from inside the orthodox theory, of which they are in fact a refinement1. In the next chapter we shall examine the consequences of introducing non-competitive elements and other alternative explanations of international trade, which can be fitted only partially (if at all) into the framework of orthodox theory.

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Authors and Affiliations

  1. Faculty of Economics and Commerce, University of Rome, Via Castro Laurenziano 9, I-00161, Rome, Italy

    Professor Dr. Giancarlo Gandolfo

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  1. Professor Dr. Giancarlo Gandolfo
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© 1986 Springer-Verlag Berlin Heidelberg

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Gandolfo, G. (1986). Some Refinements of the Orthodox Theory. In: International Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-07976-8_7

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  • DOI: https://doi.org/10.1007/978-3-662-07976-8_7

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-662-07978-2

  • Online ISBN: 978-3-662-07976-8

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