Distortions in Two Sector Dynamic Models with Incomplete Specialization

Abstract

We extend the Jones (1971) analysis of the effects of distortions in static 2x2 trade models to the case of a two sector dynamic general equilibrium model of a small open economy with capital accumulation. In contrast to the short run results, the direction of impact of factor market distortions on steady state values do not depend on the value and physical… (More)

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Cite this paper

@inproceedings{Bond2009DistortionsIT, title={Distortions in Two Sector Dynamic Models with Incomplete Specialization}, author={Eric W. Bond and Robert A. Driskill}, year={2009} }