The Simplest Possible 2x2x2 CGE Diagranomics: Revisiting the H-O, S-S Orthodoxies

The simplest possible model of computable general equilibrium with trade is presented for purposes of diagranomics pedagogica while probing/revisiting the orthodox Hecksher-Ohlin (HO) and Stolper-Samuelson (SS) theorems hopefully shedding some new light on each. Set forth against the HO orthodoxy is an H.O. heresy. The latter reverses the former outcomes, and turns the Leontief paradox no paradox accordingly. Re the SS theorem this paper challenge their policy recommendation to “bribe” the poor (or even the rich) adversely affected from free trade by pondering the meaning of bribing squarely under the light of the ‘ideal types’ model proposed herein. The paper also attempts to extend/generalize its static model by incorporating into it a growth model a la Jensen-Larsen (2004).

Common property resource and private capital accumulation with random jump

In [6], Long and Katayama presented a model of exploitation of a common property resource, when agents can also invest in private and productive capital. They considered the case where the resource extracted from a common pool is non-renewable. In this paper, we try to extend their result to the case where the common pool is under uncertainty in the sense that it could have a sudden increase or decrease in the process of extraction and moreover we shall calculate the exhaustion probability.common property resource, private capital accumulation, pure jump process, exhaustion probability, HJB (Hamilton-Jacobi-Bellman) equation