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Gains From Trade Under Uncertainty

In: The Pure Theory of International Trade Under Uncertainty

Author

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  • Raveendra N. Batra

    (Southern Methodist University)

Abstract

No treatise on the theory of international trade can be considered complete without some discussion of the subject of the gains from trade. Accordingly, this chapter is devoted to a dissection of the anatomy of gains from trade in a stochastic environment. In other words, unlike the earlier chapters which were primarily concerned with positive aspects of trade theory under uncertainty, the present chapter will deal with the welfare or normative aspects of international trade, although it would be fair to say that some sections of the foregoing chapters did investigate the normative aspects as well. The study of the implications of commodity-price-stabilisation policies for the allocative efficiency of the economic system, after all, does have some welfare connotations.

Suggested Citation

  • Raveendra N. Batra, 1975. "Gains From Trade Under Uncertainty," Palgrave Macmillan Books, in: The Pure Theory of International Trade Under Uncertainty, chapter 7, pages 110-123, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-02208-3_7
    DOI: 10.1007/978-1-349-02208-3_7
    as

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