The Cournot-Ricardo Solution under Domestic Free Movement of Labour

Alexandra Espinosa ()

Journal of Industry, Competition and Trade, 2018, vol. 18, issue 3, No 2, 295-302

Abstract: Abstract This paper analyses the properties of the Cournot-Ricardo solution if workers have incentives to move from low to high profit industries. By construction, these movements contribute to the improvement of the competitiveness of countries with free movement of labour, due to the increase in size of industries with a comparative advantage. However, in general, it is not sufficient to guarantee convergence to the Ricardo-Mill solution. In conclusion, under the inter-industry movement of labour, economies are more competitive, but specialisation might not coincide with that predicted by the Ricardo-Mill model.

Keywords: Ricardo-Mill; Ricardo-Cournot; Intra-industry; Labour mobility (search for similar items in EconPapers)
JEL-codes: C62 F11 F22 J61 (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1007/s10842-017-0258-z

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