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A General Equilibrium Model of Production Under Uncertainty

In: The Pure Theory of International Trade Under Uncertainty

Author

Listed:
  • Raveendra N. Batra

    (Southern Methodist University)

Abstract

The modern deterministic theory of international trade has been built upon the salient characteristics of the two-sector, two-factor, general equilibrium model of production. Therefore, the prerequisite to the development of the stochastic theory of international trade is the formulation of a two-by-two general equilibrium model, which takes into account the random nature of the economic environment. This is the task assigned to this chapter.* In pursuit of this goal, we draw extensively on the analytical tools developed in the previous chapter.

Suggested Citation

  • Raveendra N. Batra, 1975. "A General Equilibrium Model of Production Under Uncertainty," Palgrave Macmillan Books, in: The Pure Theory of International Trade Under Uncertainty, chapter 2, pages 18-46, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-02208-3_2
    DOI: 10.1007/978-1-349-02208-3_2
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