Trade and Indeterminacy in a Dynamic General Equilibrium Model

Koji Shimomura and Kazuo Nishimura

No 117, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This paper introduces sector-specific externalities in the Heckscher-Ohlin two-country dynamic general equilibrium model to show that indeterminacy of the equilibrium path in the would market can occur. Under certain conditions in terms of factor intensities, there are multiple equilibrium paths from the same initial distribution of capital in the world market, and the distribution of capital in the limit differs among equilibrium paths.

Keywords: Externalities; Economic models; Market (search for similar items in EconPapers)
JEL-codes: E13 F11 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2001-01
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Citations: View citations in EconPapers (4)

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https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp117.pdf First version, 2001 (application/pdf)

Related works:
Chapter: Trade and Indeterminacy in a Dynamic General Equilibrium Model (2012)
Journal Article: Trade and Indeterminacy in a Dynamic General Equilibrium Model (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:kob:dpaper:117

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