In the so-called ‘Ricardian’ trade models, exclusion from trade is impossible because a country can always compensate its technological backwardness with low wages. This result is ensured in these models due to the very ...

We survey the new Ricardian models of bilateral trade, which are seen as tractable structure for multi-country trade models addressing either cost or demand linkages to trade. Cost-based Ricardian models advance new forms ...

The paper presents a North-South trade model that discusses how changes in the technology gap affect specialization and growth in the Southern economy. The contribution of the paper is to propose a new specification for ...

The paper analysis a general equilibrium model with two periods, several households and a government that has to finance some expenditures in the first period. Households may have some private information either about their ...

How does welfare change in the short- and long-run when trade integration takes place under imperfect labor markets? Even if consumers benefit from lower prices, there can be significant welfare losses from increases in ...