An Extended Ricardian Model Incorporating a Consumption Time Constraint

Authors

  • Binh Tran-Nam

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    1. The University of New South Wales, Sydney, Australia
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    • I wish to thank Professor Murray Kemp for his invaluable comments.


Tran-Nam: Atax, The University of New South Wales, Sydney, NSW 2052, Australia. Tel: 612-9385-9561; Fax: 612-9385 9515; E-mail: b.tran-nam@unsw.edu.au.

Abstract

This paper investigates the impact of incorporating a Gossenian−Beckerian consumption time constraint into a simple Ricardian model. It is shown that in such a model the consumption gain from trade is zero, the specialization gain can be negative and a small nation devotes less labor to production after trade.

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