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Trade with a Produced Transportation Good

John Hartwick

No 34, Working Paper from Economics Department, Queen's University

Abstract: This paper is in one sense the analysis of a particular case of the Hadley and Kemp model (described in the paper). We shall focus on two region or country trade with two orthodox commodities plus a produced transport commodity. We will observe that balance of payments disequilibrium is a general result with trade with endogenous transport costs and finally that reductions in transport costs may not result in factor prices moving closer together.

Pages: 35 pages
Date: 1971-03
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http://qed.econ.queensu.ca/working_papers/papers/qed_wp_34.pdf First version 1971 (application/pdf)

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