An elementary proposition on technical progress and non-traded goods |
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Authors: | Hamid Beladi Reza Oladi |
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Institution: | a Department of Economics, University of Texas at San Antonio, United States;b Department of Applied Economics, Utah State University, United States |
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Abstract: | We explore the effect of technical progress on the endogenously determined range of non-traded goods by using a Ricardian model with continuum of goods. By defining technical progress on the basis of proportional changes in the relative productivity across sectors, we show that the range of non-traded goods decreases if technical progress is unbiased or if it is biased toward the goods that a country has more comparative advantage. |
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Keywords: | Non-traded good range Technical progress |
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