A two-country, three-commodity three-factor trade model is set out. One commodity is the output of transportation services. These services are tradable, produced with a production function distinct from those used by the other two (final) commodities between countries. Stolper-Samuelson relations on the changes of world commodity prices are set out. The Kuhn-MacKinnon fixed point algorithm is used to numerically solve the two-country model for purposes of illustration. Transportation subsidies are introduced and the example is resolved. The welfare costs of the subsidies are measured.

  • Corporate Authors:

    Canadian Institute of Guided Ground Transport

    Queen's University
    Kingston, Ontario K7L 3N6,   Canada 
  • Authors:
    • Hartwick, J M
  • Publication Date: 1975

Media Info

  • Features: Figures; References; Tables;
  • Pagination: 25 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00141129
  • Record Type: Publication
  • Source Agency: Canadian Institute of Guided Ground Transport
  • Report/Paper Numbers: No. 75-8
  • Files: TRIS
  • Created Date: Oct 26 1976 12:00AM