The Sonnenschein–Debreu–Mantel Proposition and the Theory of International Trade

Murray Kemp and Koji Shimomura

Review of International Economics, 2002, vol. 10, issue 4, 671-679

Abstract: Much of the comparative statics of trade theory rests on the unrealistic assumption that in each trading country all households are alike or behave collectively as though they are alike. In the present paper the authors show that two well–known comparative statical propositions are highly sensitive to the relaxation of the assumption, and suggest that many other results are equally fragile.

Date: 2002
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