A graphical version of Heckscher-Ohlin is analyzed. The focus is on the increase in consumer possibilities associated with trade based on differences in factor endowments.
Views: 87958 Mike Moore
Analysis of "relative price of a good" i.e. how much one good is worth in terms of another. Frequent context: how much a consumer foregoes when he/she decides to buy one good instead of another. Often used as in international trade as the "terms of trade" ----price of an import good in terms of an export good
Views: 47740 Mike Moore
Quick overview of computable equilibrium models (CGEs), which are used frequently when trying to understand the economy-wide impact of policy changes. The are not forecasts but instead are simulations of what the economy might look like if a particular policy were in place for a base year.
Views: 16983 Mike Moore
Impact of an increase in capital on production and welfare in a Heckscher-Ohlin model. Version of the Rybczyski theorem. Impact on trade volume as well.
Views: 21728 Mike Moore
Effects of changing relative prices on real returns to labor and capital. Assuming that capital is sector-specific but labor can move between industries. (Sometimes known as "short run" model.)
Views: 7360 Mike Moore
This video describes the impact of an increase in the total amount of labor in a country in the context of a Heckscher-Ohlin model. A version of the Rybczynski theorme.
Views: 8063 Mike Moore
This video introduces the primary assumptions of the Ricardian model. These include, among others, perfect competition in output and factor markets. For each, the implications of the assumption are explored. For example, the full employment condition leads to the derivation of the production possibilities frontier (PPF) in the Ricardian model.
Views: 15622 Mike Moore