Exploring policy options in joint intertemporal-spatial trade models using an incomplete markets approach

Abstract

GATS, Financial services, Intertemporal trade, Intermediation services, Service trade liberlization, D58, F13,

On the stability of equilibrium for a reformulated foreign trade model of three countries

“…Keeping in mind that Newton's universal law of gravitation (describing the bilateral interaction of two masses) becomes quite complex when we consider the system of three masses, we may easily anticipate the complexity of our conditions for the system of three countries. Of course, apart the gravity equation, there are many other excellent approaches as regards the international trade and the respective modeling, see Alenikov et al (1969), Brems (1956), Bond and Driskill (2009), Cabo et al (2008, Chaney (2008Chaney ( , 2011, , Eaton et al (0000), Gcke (2001), Hager and Garg (1972), Horiba and Moroney (1979), Huang et al (2009), Jones (2012, Marjit (2009), Jones (1975), Kokot (2004), Korobko (2000), Koyck (1953), Krelle (1987), Krugman (1980), Luke and Breakwell (1978), Nagy and Stahl (1967), Mansur and Whalley (1982), Mikhalevich et al (2001), Mycielski et al (1963), Van der Laan (1990), Whalley and White (1985), Yano (1990), Yu et al (2008), Zhu and Huang (2007). Although primitive and using only the demand point of view, the foreign trade model prospect still provides an excellent insight into the problem and justification of business cycles appearing in national economies.…”