We show that the Kemp-Wan proposition concerning the formation of customs union holds conditions of iperfect competition and increasing returns.

We show that even under socially constant returns to scale indeterminacy, i.e., a continuum of dynamic general equilibrium paths converging to a common steady state, can arise in a dynamic Heckscher-Ohlin model with production externality and endogenous time preference in which production is...

This paper introduces sector-specific externalities in the Heckscher-Ohlin two-country dynamic general equilibrium model to show that indeterminacy of the equilibrium path in the would market can occur. Under certain conditions in terms of factor intensities, there are multiple equilibrium paths...

In the present note we construct an overlapping-generations (OLG) example in which free trade is Pareto-improving and the world equilibrium chaotic. The example is simple, but it is not incompatible with the general model of Kemp and Wolik.

We present a simple two(-country) by two(-good) differental game model of international trade in which the governments of the two countries play a tariff-setting game. We explicitly derive a unilateral optimum tarifff rate and then a Markov-perfect equilibrium pair of tariff strategies...

The conclusions of the 1976 Kemp-Van proposition are shown to be substantially valid even if all tariff vectors, both pre-union and post-union, are optimally chosen.

The conclusions of the 1976 Kemp-Wan proposition are shown to be substantially valid even if all tariff vectors, both pre-uion and post-union, are optimally chosen.

We built an overlapping generation model of endonenous growth driven by human capital formation. Young peole differ in their innate abilities, but these differences are not known even by the individuals themselves when they are going through the process of education, so that there are no adverse...

This paper presents a simple overlapping generations model of small open economy with child-parent externality that exhibits chaotic equilirbium dynamics.

We formulate a two(-country) by two(-tradable good) by two(-factor) dynamic general equilibrium model of endogenous growth and international rade that has no market distortion. After deriving the conditions for a balanced growth path with incomplete specialization in both countries to exist and...