An Elementary Proposition on Technical Progress and Non-Traded Goods

Document Type

Article

Journal/Book Title/Conference

Journal of Mathematical Economics

Volume

47

Publication Date

2011

First Page

68

Last Page

71

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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