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Autarkic indeterminacy and trade determinacy
Author(s) -
Sim Nicholas C. S.,
Ho KongWeng
Publication year - 2007
Publication title -
international journal of economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 11
eISSN - 1742-7363
pISSN - 1742-7355
DOI - 10.1111/j.1742-7363.2007.00062.x
Subject(s) - determinacy , autarky , indeterminacy (philosophy) , economics , keynesian economics , neoclassical economics , mathematical economics , philosophy , mathematics , market economy , epistemology , mathematical analysis , welfare
We extend the model of Nishimura and Shimomura (2002) to consider a two‐country framework where under autarky indeterminacy arises in one country but determinacy in the other, and show that indeterminacy could be eliminated when trade takes place between the two.