Gains from trade

Chambers, C. P. and Hayashi, T. (2017) Gains from trade. International Economic Review, 58(3), pp. 923-942. (doi:10.1111/iere.12240)

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Abstract

In a social choice context, we ask whether there exists a rule in which nobody loses under trade liberalization. We consider a resource allocation problem in which the traded commodities vary. We propose an axiom stating that enlarging the set of tradable commodities hurts nobody. We show that if a rule satisfies this axiom, together with an allocative efficiency axiom and an institutional constraint axiom stating that only preferences over tradable commodities matter, gains from trade can be given to only one individual in the first step of liberalization.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Hayashi, Professor Takashi
Authors: Chambers, C. P., and Hayashi, T.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:International Economic Review
Publisher:Wiley
ISSN:0020-6598
ISSN (Online):1468-2354
Published Online:25 August 2017
Copyright Holders:Copyright © 2017 Economic Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association
First Published:First published in International Economic Review 58(3): 923942
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher

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