IDEAS home Printed from https://ideas.repec.org/a/spr/eaiere/v21y2024i2d10.1007_s40844-024-00291-1.html
   My bibliography  Save this article

Impacts of international trade on the SMT view of the economy

Author

Listed:
  • Tosihiro Oka

    (Kyoto University)

Abstract

Shiozawa, Morioka and Taniguchi (2019)’s Microfoundations for Evolutionary Economics (Springer Japan) provided an alternative view (SMT view) of the economy to the orthodox equilibrium view of the economy. According to the SMT view, demand and supply are matched by quantity adjustment under fixed prices, and prices function as a transmitter of cost information downstream as well as a guide for choice and development of techniques. This paper examines the impacts of international trade on the SMT view based on the new theory of international values (NTIV). In a closed economy, prices are uniquely determined even if there are many choices of techniques by the minimal price theorem. With international trade, due to the multiplicity of wages, prices are not uniquely determined. Whether this fact allows demand to participate in the determination of prices is examined, and it is clarified that because of the disparity of real production possibility set from the hypothetical one, which is effective in determining prices, demand loses the power of equilibration. This fact opens up the possibility and even necessity of production taking place below the maximal boundary, which is accompanied by unemployment. Individual firms’ behavior in the choice and development of techniques and the process of price conversion that are consistent with the SMT view and the NTIV is formulated. A residual unsolved question of wage adjustment following technological changes is identified.

Suggested Citation

  • Tosihiro Oka, 2024. "Impacts of international trade on the SMT view of the economy," Evolutionary and Institutional Economics Review, Springer, vol. 21(2), pages 321-347, September.
    • Handle: RePEc:spr:eaiere:v:21:y:2024:i:2:d:10.1007_s40844-024-00291-1
    DOI: 10.1007/s40844-024-00291-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40844-024-00291-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40844-024-00291-1?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    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:spr:eaiere:v:21:y:2024:i:2:d:10.1007_s40844-024-00291-1. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.