Date: 2004
Type: Article
On the evolution of comparative advantage in matching models
Journal of international economics, 2004, Vol. 64, No. 1, pp. 169-193
FISHER, Eric O’N., KAKKAR, Vikas, On the evolution of comparative advantage in matching models, Journal of international economics, 2004, Vol. 64, No. 1, pp. 169-193
- https://hdl.handle.net/1814/71304
Retrieved from Cadmus, EUI Research Repository
This paper examines whether comparative advantage is the long-run outcome of an evolutionary process in the open economy It formalizes the notion that natural selection eliminates inefficient firms and thus leads to stable and perhaps efficient patterns of world trade. Instead of assuming the existence of a Walrasian auctioneer, we study two simple matching processes that coordinate trade between firms. Our central result is that specialization according to comparative advantage, with the larger country possibly incompletely specialized, is the unique evolutionarily stable state of the world economy. (C) 2003 Elsevier B.V. All rights reserved.
Additional information:
First published online: 27 April 2004
Cadmus permanent link: https://hdl.handle.net/1814/71304
Full-text via DOI: 10.1016/S0022-1996(03)00080-1
ISSN: 0022-1996; 1873-0353
Publisher: Elsevier
Files associated with this item
Files | Size | Format | View |
---|---|---|---|
There are no files associated with this item. |