Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283701 
Authors: 
Year of Publication: 
2023
Series/Report no.: 
WIDER Working Paper No. 2023/5
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
The structure employed is a small open economy, with one city and a rural hinterland, two traded goods, a transport sector, two specific factors, and mobile labour. A socially profitable programme will promote not only internal, but also external trade. Theory and numerical examples indicate that aggregate social profitability and its distribution between town and country are rather insensitive to the city's location and whether: (i) it is financed by a tariff or an excise on the importable; (ii) the transportation wage is regulated; and (iii), when agents are risk neutral, the economy's barter terms of trade fluctuate stochastically
Subjects: 
rural roads
general equilibrium
social profitability
small open economy
JEL: 
H54
O18
O22
R13
Persistent Identifier of the first edition: 
ISBN: 
978-92-9267-313-0
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.