Immiserizing Growth: Trade Expansion and Welfare Loss
Immiserizing growth explains how export expansion can reduce welfare when a severe terms-of-trade loss outweighs the gain from higher output.
terms of trade
Terms of Trade Economics: Prices and Welfare
Terms of trade economics explains how export prices, import prices, and trade purchasing power shape welfare in international trade.
Reciprocal Demand: Mill’s Trade Price Logic
Reciprocal demand explains how Mill’s trade theory determines the exact terms of trade inside the range created by comparative advantage.
Offer Curves: Reciprocal Demand and Terms of Trade
Offer curves explain how reciprocal demand determines the terms of trade and the volume of trade between two countries.
Australia Economy: Commodities, China, End of Record Run
The Australia economy explained: how commodities, dependence on China, a floating dollar, and heavy household debt shaped a record growth...
Optimal Tariff Theory: When a Tariff Can Make a Large Country Better Off
Optimal tariff theory is the exception to the free-trade rule. A large country can raise its welfare by taxing imports,...