THE THEORY OF INTERSTELLAR TRADE

Paul Krugman

Economic Inquiry, 2010, vol. 48, issue 4, 1119-1123

Abstract: This article extends interplanetary trade theory to an interstellar setting. It is chiefly concerned with the following question: how should interest charges on goods in transit be computed when the goods travel at close to the speed of light? This is a problem because the time taken in transit will appear less to an observer traveling with the goods than to a stationary observer. A solution is derived from economic theory, and two useless but true theorems are proved. (JEL F10, F30)

Date: 2010
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