A unification of second best results in international trade

@inproceedings{Krishna2000AUO,
  title={A unification of second best results in international trade},
  author={Pravin Krishna and Arvind Panagariya},
  year={2000}
}
Abstract The received wisdom from the theory of second best is that the presence of distortions in some sectors of the economy would in general require intervention in other sectors as well. This paper offers a simple set of propositions which help unify the results of numerous papers in the international trade literature involving the theory of second best, many of which appear to contradict this theory. The propositions identify how, in optimization problems in economics, pre-imposed… CONTINUE READING