An Elementary Proposition on Technical Progress and Non-Traded Goods
Journal of Mathematical Economics
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.
“An Elementary Proposition on Technical Progress and Non-traded Goods,” (with H. Beladi), Journal of Mathematical Economics 47, 2011: 68-71.