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Dynamic effects |
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Dynamic effectsRefers to certain poorly understood effects of trade and trade liberalization, including both multilateral and preferential trade agreements, that extend beyond the static gains from trade. Such dynamic effects are thought to make the gains from trade substantially larger than in the static model.Similar MatchesDynamic economies of scaleDynamic economies of scaleA form of increasing returns to scale in which average cost declines over time as producers accumulate experience, so that average product rises with total output of the firm or industry accumulated over time. See learning by doing, infant industry protection. Dynamic gains from tradeDynamic gains from tradeThe hoped-for benefits from trade that accrue over time, in addition to the conventional static gains from trade of trade theory. Sources of these gains are not well understood or documented, although there exist a variety of possible theoretical reasons for them and some empirical evidence that countries have benefited more than the static gains alone would suggest. Dynamic comparative advantageDynamic comparative advantageA changing pattern of comparative advantage over time due to changes in factor endowments or technology. Dynamic Web pageDynamic Web pageA Web page that is customized on the server (based on results of a script, user input, information about the user's browser, etc.) before being delivered to the user's browser. Dynamic modelDynamic modelAny model with an explicit time dimension. To be meaningfully dynamic, however, it should include variables and behavior that, at one time, depend on variables or behavior at another time. Models may be formulated in discrete time or in continuous time. Contrasts with a static model. Further SuggestionsDynamical Noise |
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