Non-homothetic preferences and technology in Ricardian modelos of imperfect competition

• Grant number: 06/00086-9
• Support Opportunities: Regular Research Grants
• Start date: July 01, 2006
• End date: June 30, 2008
• Field of knowledge: Applied Social Sciences - Economics - International Economy
• Principal Investigator: Carlos Alberto Cinquetti
• Grantee: Carlos Alberto Cinquetti
• Host Institution: Faculdade de Ciências e Letras (FCL). Universidade Estadual Paulista (UNESP). Campus de Araraquara. Araraquara , SP, Brazil

Abstract

Two distinct investigations are worked out with Ricardian models under imperfect competition. In the first research, we rely on the simple Ricardian framework to consider non-homothetic preferences among countries, seeking to determine terms of trade variations. That is, to solve an insuficiency in some analyzes relying on non-price based competition. In the second research, we mathematically examine some likely pitfalls when applying comparative cost models to countries with large divergence in endowments. (AU)