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Gains From Trade in a Deficit-Ridden Economy - Note

Author

Listed:
  • Barbara Dluhosch
  • Andreas Freytag
  • Malte Krueger

Abstract

The US deficit on current account is frequently considered to be a problem of the US. A recently published paper by BATRA and BELADI [1996] is a case in point. By drawing on a revealed preference framework they claim that it might be better for the US to impose trade restrictions in order to balance the US current account. However, by employing the same revealed preference approach and adopting an intertemporal perspective, our note shows that the case for free trade also holds in an intertemporal setting.

Suggested Citation

  • Barbara Dluhosch & Andreas Freytag & Malte Krueger, 1998. "Gains From Trade in a Deficit-Ridden Economy - Note," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 154(4), pages 680-680, December.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(199812)154:4_680:gftiad_2.0.tx_2-7
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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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