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Recent Challenges to the Classical Gains-from-Trade Proposition
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Murray C. Kemp
Published/Copyright:
November 30, 2019
Abstract
The classical gains-from-trade conjecture was finally given a thorough Arrow±Debreu proof in 1972. Since then, the proposition has been repeatedly challenged. Some of the challenges rest on grounds which in no respect violate Arrow±Debreu assumptions. Those challenges are therefore without foundation. The remaining challenges rest on the assertion that some of the Arrow±Debreu assumptions are unnatural and unnecessarily restrictive or on the imposition of artificial restrictions on the set of permissible compensatory transfers. We conclude that none of the challenges can be sustained.
Published Online: 2019-11-30
Published in Print: 2002-12-01
© 2019 by Walter de Gruyter Berlin/Boston
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Articles in the same Issue
- The German Business Tax Reform of 2000: A General Equilibrium Analysis
- Gender Wage Differences in West Germany: A Cohort Analysis
- Labor Taxation in Search Equilibrium with Home Production
- Falling Labor Share and Rising Unemployment: Long-Run Consequences of Institutional Shocks?
- Bid Functions in Auctions and Fair Division Games: Experimental Evidence
- Recent Challenges to the Classical Gains-from-Trade Proposition
- Index: Volume 3, 2002
Articles in the same Issue
- The German Business Tax Reform of 2000: A General Equilibrium Analysis
- Gender Wage Differences in West Germany: A Cohort Analysis
- Labor Taxation in Search Equilibrium with Home Production
- Falling Labor Share and Rising Unemployment: Long-Run Consequences of Institutional Shocks?
- Bid Functions in Auctions and Fair Division Games: Experimental Evidence
- Recent Challenges to the Classical Gains-from-Trade Proposition
- Index: Volume 3, 2002
