A Ricardian model with a continuum of goods under nonhomothetic preferences: Demand complementarities, income distribution, and North-South trade

• 成果类型: Article
• 署名作者: Matsuyama, K
• 署名单位: Northwestern University
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/317684
• 发表日期: 2000
• 页码: 1093-1120
• 关键词: investment

摘要

This paper develops a Ricardian model of trade in which goods are indexed according to priority and higher-indexed goods are consumed only by richer households. South (North) has a comparative advantage in lower- (higher-) indexed goods and, hence, specializes in goods with lower (higher) income elasticities of demand. Product cycles and a southern terms-of-trade deterioration result from faster population growth and uniform productivity growth in South and a global productivity improvement. South's domestic income redistribution policy can improve its terms of trade so much that every household in South may be better off, at the expense of North.