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Price Adjustments And Multiregional Rigidities In The Analysis Of World Trade

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  • David Batten
  • Börje Johansson

Abstract

ABSTRACT This paper reviews a variety of approaches to modeling interregional and international trade flows. It then suggests a framework which is capable of combining price formation mechanisms with factors which cause resistance to change and barriers to trade. In certain respects the framework adheres to the Takayama‐Judge tradition, but differs by using a probabilistic approach which generates solutions which are not perfectly competitive equilibria. With regard to prices, the adopted framework is Walrasian rather than Marshallian in nature.

Suggested Citation

  • David Batten & Börje Johansson, 1985. "Price Adjustments And Multiregional Rigidities In The Analysis Of World Trade," Papers in Regional Science, Wiley Blackwell, vol. 56(1), pages 145-166, January.
    • Handle: RePEc:bla:presci:v:56:y:1985:i:1:p:145-166
    DOI: 10.1111/j.1435-5597.1985.tb00844.x
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    Cited by:

    1. José Holguín-Veras & Ning Xu & Miguel Jaller & John Mitchell, 2016. "A Dynamic Spatial Price Equilibrium Model of Integrated Urban Production-Transportation Operations Considering Freight Delivery Tours," Transportation Science, INFORMS, vol. 50(2), pages 489-519, May.
    2. J R Roy, 1987. "An Alternative Information Theory Approach for Modelling Spatial Interaction," Environment and Planning A, , vol. 19(3), pages 385-394, March.
    3. Kazuhiko Ishiguro & Hajime Inamura, 2001. "Development of ocean carriers' behaviour model focusing on their 'cost and tariff' based on the spatial general equilibrium," Maritime Policy & Management, Taylor & Francis Journals, vol. 28(3), pages 251-264, July.
    4. D F Batten, 1986. "Letter to the Editor," Environment and Planning A, , vol. 18(5), pages 695-697, May.
    5. Walter C. Labys & Chin-wei Yang, 1991. "Advances in the Spatial Equilibrium Modeling of Mineral and Energy Issues," International Regional Science Review, , vol. 14(1), pages 61-94, April.

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