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Trade and Welfare in General Equilibrium

  • Michihiro Ohyama
Chapter
Part of the Advances in Japanese Business and Economics book series (AJBE, volume 14)

Abstract

In his 1939 article, Samuelson initiated the modern discussion of the gains from trade. Concerning himself with a small price-taking country and basing his cases on the compensation principle and the axiom of revealed preference, he established that the introduction of external trade could make all citizens better off. His approach received a considerable amount of notice, but no further result came of it for some time. It was not until two decades later that Kemp (1962), along with Samuelson (1962), revived the subject by showing, under a more general condition, that the consumption possibility frontier of the post-trade situation lies uniformly outside that of the pre-trade situation. Their findings, however, seem to call for further generalization.

Keywords

Free Trade Custom Union Price Vector Trade Effect Trade Diversion 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Japan 2016

Authors and Affiliations

  • Michihiro Ohyama
    • 1
  1. 1.Professor EmeritusKeio UniversityTokyoJapan

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