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Immiserizing growth and the Metzler Paradox in the Ricardian Model

Collie, David Robert 2012. Immiserizing growth and the Metzler Paradox in the Ricardian Model. International Economic Journal 26 (1) , pp. 141-154. 10.1080/10168737.2010.538429

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Conditions for the occurrence of immiserizing growth and the Metzler paradox are analysed in the Ricardian model when consumers in the foreign country have Leontief preferences while consumers in the home country have Cobb-Douglas preferences. By using specific functional forms, the conditions for the occurrence of the two paradoxes are defined in terms of the exogenous parameters of the model rather than endogenous variables such as the foreign import demand elasticity in the conditions of Bhagwati (1958) and Metzler (1949a, b). It is shown that the simultaneous occurrence of both paradoxical results is possible for some parameter values.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Uncontrolled Keywords: Immiserizing growth ; Metzler paradox ; Import tariffs ; Ricardian Model.
Publisher: Taylor and Francis
ISSN: 1016-8737
Last Modified: 04 Jun 2017 03:15

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