Analysis of linear trade models and relation to scale economies.
We discuss linear Ricardo models with a range of parameters. We show that the exact boundary of the region of equilibria of these models is obtained by solving a simple integer programming problem. We show that there is also an exact correspondence between many of the equilibria resulting from families of linear models and the multiple equilibria of economies of scale models.
Gomory
R E
RE
Alfred P. Sloan Foundation, 630 Fifth Avenue, Suite 2550, New York, NY 10111, USA.
Baumol
W J
WJ