Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202959 
Year of Publication: 
2019
Series/Report no.: 
Working Paper No. 2019-05
Publisher: 
University of Massachusetts, Department of Economics, Amherst, MA
Abstract: 
This paper analyzes the persistency of the unequal exchange of labor (UE) in international trade. An intertemporal model of a world economy is defined with a leisure preference and no discount factor. Every incompletely specialized free trade equilibrium is characterized as having non-persistent UE, which verifies the convergence of economies without relying on economic growth or diminishing returns to scale. In particular, it characterizes a subclass of equilibria in which the sequence of real interest rates does not converge to zero, but UE tends to disappear while equivalently the distribution of capital assets tends to be equalized in the long run.
Subjects: 
Unequal exchange of labor
a world economy with a leisure preference
non-stationary relative prices of commodities
JEL: 
D51
D63
D91
Document Type: 
Working Paper

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