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Aggregation By Industry In High‐Dimensional Models *
Author(s) -
Lloyd Peter J.
Publication year - 1994
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/j.1467-9396.1994.tb00032.x
Subject(s) - economics , homogeneous , consumption (sociology) , production (economics) , econometrics , similarity (geometry) , mathematical economics , microeconomics , industrial organization , computer science , mathematics , social science , combinatorics , artificial intelligence , sociology , image (mathematics)
Models of trading economies have become very large in dimensions and complex in structure. Conditions which are sufficient for aggregation in production and/or consumption are derived. They require the existence of linearly homogeneous indices of production and/or consumption in the industries or sufficient similarity among agents. These methods are applied to the Armington model and to a group of models in which the commodities in an industry are denned on a continuum. the results are applied to the method of constructing general‐equilibrium models with many commodities, tests of comparative advantage, and the measurement of effective protection in multicommodity industries.