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The Sonnenschein–Debreu–Mantel Proposition and the Theory of International Trade
Author(s) -
Kemp Murray C.,
Shimomura Koji
Publication year - 2002
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/1467-9396.00357
Subject(s) - comparative statics , economics , proposition , mathematical economics , comparative advantage , econometrics , neoclassical economics , microeconomics , philosophy , epistemology
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.