A Ricardian Model with a Continuum of Goods under Nonhomothetic Preferences: Demand Complementarities, Income Distribution, and North-South Trade

Article, Preprint OPEN
Kiminori Matsuyama;
  • Journal: Journal of Political Economy,volume 108,issue 6 December,pages1,093-1,120
  • Related identifiers: doi: 10.1086/317684
  • Subject:
    • jel: jel:F11 | jel:O11

This paper develops a Ricardian model with a continuum of goods when consumers have nonhomothetic preferences. Goods are indexed in terms of priority, and the households add higher-indexed goods to their consumption baskets, as they become richer. South (North) has comp... View more
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