IDEAS home Printed from https://ideas.repec.org/a/bla/metroe/v75y2024i3p282-305.html
   My bibliography  Save this article

An input trade model with Keynesian unemployment: Bridging a gap between trade theory and international Input–Output analysis

Author

Listed:
  • Hideo Sato

Abstract

This study presents a trade model with (1) intermediate inputs, (2) link commodities, and (3) Keynesian unemployment. The model has linear input coefficients, stable commodity prices, and short‐run adjustment of the quantity supplied on the occasion of demand changes, making it compatible with international input–output tables and analysis. Given production techniques, labor endowments, upper limits of unemployment rates, markup rates, and final demand in each country, this model specifies feasible trade patterns and determines commodity prices, wage rates, gross outputs, employment/unemployment rates, national income, income distribution, and trade volumes/values for each pattern. Starting with a two‐country, three‐commodity case, this model expands to a multi‐country, multi‐commodity case.

Suggested Citation

  • Hideo Sato, 2024. "An input trade model with Keynesian unemployment: Bridging a gap between trade theory and international Input–Output analysis," Metroeconomica, Wiley Blackwell, vol. 75(3), pages 282-305, July.
  • Handle: RePEc:bla:metroe:v:75:y:2024:i:3:p:282-305
    DOI: 10.1111/meca.12452
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/meca.12452
    Download Restriction: no

    File URL: https://libkey.io/10.1111/meca.12452?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. A. P. Thirlwall, 1997. "Reflections on the Concept of Balance-Of-Payments–Constrained Growth," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 19(3), pages 377-385, March.
    2. Ronald W. Jones, 2000. "Globalization and the Theory of Input Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 026210086x, December.
    3. Deardorff, Alan V., 2005. "Ricardian comparative advantage with intermediate inputs," The North American Journal of Economics and Finance, Elsevier, vol. 16(1), pages 11-34, March.
    4. Ronald W. Jones, 1961. "Comparative Advantage and the Theory of Tariffs: A Multi-Country, Multi-Commodity Model," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 28(3), pages 161-175.
    5. Dvoskin, Ariel & Ianni, Guido, 2021. "Produced means of production and the chain of comparative advantages," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 635-647.
    6. Sato, Hideo, 2021. "Graham’S Theory Of International Values Revisited: A Ricardian Trade Model With Link Commodities," Journal of the History of Economic Thought, Cambridge University Press, vol. 43(2), pages 193-218, June.
    7. Sato, Hideo & Assistant, JHET, 2021. "Graham’s Theory of International Values Revisited: A Ricardian Trade Model with Link Commodities," OSF Preprints h84yp, Center for Open Science.
    8. Jonathan Eaton & Samuel Kortum, 2002. "Technology, Geography, and Trade," Econometrica, Econometric Society, vol. 70(5), pages 1741-1779, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hideo Sato, 2022. "A multi‐country, multi‐commodity Ricardian trade model with link commodities and Keynesian unemployment," Metroeconomica, Wiley Blackwell, vol. 73(2), pages 441-465, May.
    2. Ariel Dvoskin & Gabriel Brondino, 2022. "An appraisal of alternative Ricardian trade models," BCRA Working Paper Series 2022104, Central Bank of Argentina, Economic Research Department.
    3. Nowak, Jean-Jacques & Petit, Sylvain & Sahli, Mondher, 2010. "Tourism and Globalization: The International Division of Tourism Production," MPRA Paper 75083, University Library of Munich, Germany.
    4. Markusen, James R., 2013. "Expansion of trade at the extensive margin: A general gains-from-trade result and illustrative examples," Journal of International Economics, Elsevier, vol. 89(1), pages 262-270.
    5. Alan V Deardorff, 2011. "How Robust is Comparative Advantage?," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 17, pages 183-195, World Scientific Publishing Co. Pte. Ltd..
    6. Ronald W. Jones, 2010. "Production Possibility Frontiers," Chapters, in: Mark Blaug & Peter Lloyd (ed.), Famous Figures and Diagrams in Economics, chapter 33, Edward Elgar Publishing.
    7. Dvoskin, Ariel & Ianni, Guido, 2021. "Produced means of production and the chain of comparative advantages," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 635-647.
    8. Sergi Basco & Martí Mestieri, 2019. "The world income distribution: the effects of international unbundling of production," Journal of Economic Growth, Springer, vol. 24(2), pages 189-221, June.
    9. Takeshi Ogawa, 2013. "Application of Jones' Inequality to the n-country, m-good Ricardo–Graham Model," Economics Bulletin, AccessEcon, vol. 33(1), pages 379-387.
    10. Wilhelm Kohler, 2007. "The Bazaar Effect, Unbundling of Comparative Advantage, and Migration," CESifo Working Paper Series 1932, CESifo.
    11. Kwok Tong Soo, 2014. "The gains from trade in intermediate goods," Working Papers 63719205, Lancaster University Management School, Economics Department.
    12. Luanping Zhou & Bruce I. Iormom & Muhammad Salman Azhar & Michael Yao‐Ping Peng, 2022. "Domestic inflation, exchange rate, and aggregate import demand nexus in Nigeria: New evidence from cointegrating regression," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 4154-4165, October.
    13. Henry Thompson, 2013. "Regional Trade in a Purely Competitive Model," Auburn Economics Working Paper Series auwp2013-15, Department of Economics, Auburn University.
    14. Tony Aspromourgos & Kenji Mori & Masashi Morioka & Arrigo Opocher & J. Barkley Rosser & Yoshinori Shiozawa & Kazuhisa Taniguchi & Heinz D. Kurz & Neri Salvadori, 2022. "Symposium on Yoshinori Shiozawa, Masashi Morioka and Kazuhisa Taniguchi (2019), Microfoundations of evolutionary economics, Tokyo: Springer Japan," Metroeconomica, Wiley Blackwell, vol. 73(1), pages 2-48, February.
    15. Nazif Durmaz & Henry Thompson, 2020. "Relative Prices and Empirical Trade Patterns," Auburn Economics Working Paper Series auwp2020-06, Department of Economics, Auburn University.
    16. Kazuhiro Kurose & Hiroshi Nishi, 2024. "Special issue: microfoundation of evolutionary economics and its application: part 2," Evolutionary and Institutional Economics Review, Springer, vol. 21(2), pages 301-303, September.
    17. Deardorff, Alan V., 2005. "Ricardian comparative advantage with intermediate inputs," The North American Journal of Economics and Finance, Elsevier, vol. 16(1), pages 11-34, March.
    18. Bond, Eric, 2005. "Market linkages with fragmented production," The North American Journal of Economics and Finance, Elsevier, vol. 16(1), pages 119-135, March.
    19. Soo, Kwok Tong, 2018. "The gains from trade in intermediate goods: A Ricardo-Sraffa-Samuelson model," International Review of Economics & Finance, Elsevier, vol. 54(C), pages 244-261.
    20. Paolo Epifani & Gino Gancia, 2008. "The Skill Bias of World Trade," Economic Journal, Royal Economic Society, vol. 118(530), pages 927-960, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:metroe:v:75:y:2024:i:3:p:282-305. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0026-1386 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.