| Author: | Hak Choi | ISBN: | 1230002257839 |
| Publisher: | Hak Choi | Publication: | April 8, 2018 |
| Imprint: | Language: | English |
| Author: | Hak Choi |
| ISBN: | 1230002257839 |
| Publisher: | Hak Choi |
| Publication: | April 8, 2018 |
| Imprint: | |
| Language: | English |
First proposed by Edgeworth in 1894, offer curve describes the relation between two products, like the export and import of a country, so it should be the best tool to explain international trade. But economists disagree on how it looks like. Some claim it should have positive relation, some like to see its cone shape. In addition, the method of deriving it is still a mystery. Scitovsky applied utility to obtain a backward-bending curve and to imply the so-called optimal tariff theory. But, any tariff must be wrong or, at least, distortionary. Then, offer curve becomes the culprit of the wrong or distortionary policy. What a waste of such a good tool! This book will prove that it is not that hard to find the correct offer curve.
First proposed by Edgeworth in 1894, offer curve describes the relation between two products, like the export and import of a country, so it should be the best tool to explain international trade. But economists disagree on how it looks like. Some claim it should have positive relation, some like to see its cone shape. In addition, the method of deriving it is still a mystery. Scitovsky applied utility to obtain a backward-bending curve and to imply the so-called optimal tariff theory. But, any tariff must be wrong or, at least, distortionary. Then, offer curve becomes the culprit of the wrong or distortionary policy. What a waste of such a good tool! This book will prove that it is not that hard to find the correct offer curve.
