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Gains from trade theorem |
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Gains from trade theoremThe theoretical proposition that (in the absence of distortions) there will be gains from trade for any economy that moves from autarky to free trade, as well as for a small open economy and for the world as a whole if tariffs are reduced appropriately. Due to Samuelson (1939, 1962).Similar MatchesTwo fund separation theoremTwo fund separation theoremThe theoretical result that all investors will hold a combination of the risk-free asset and the market portfolio. Central Limit TheoremCentral Limit TheoremThe Law of Large Numbers states that as a sample of independent, identically distributed random numbers approaches infinity, its probability density function approaches the normal distribution. See: Normal Distribution. Mutual fund theoremMutual fund theoremA result associated with the CAPM, asserting that investors will choose to invest their entire risky portfolio in a market-index or mutual fund. Rybczynski TheoremRybczynski TheoremThe property of the Heckscher-Ohlin Model that, at constant prices, an increase in the endowment of one factor increases the output of the industry that uses that factor intensively and reduces the output of the other (or some other) industry. Due to Rybczynski (1955). Heckscher-Ohlin TheoremHeckscher-Ohlin TheoremThe proposition of the Heckscher-Ohlin Model that countries will export the goods that use relatively intensively their relatively abundant factors. Further SuggestionsCoase TheoremLerner Symmetry Theorem Factor Price Equalization Theorem First theorem of welfare economics Stolper-Samuelson Theorem Second theorem of welfare economics Interest rate parity theorem Spot futures parity theorem Heckscher-Ohlin-Vanek Theorem Kemp-Wan Theorem Separation theorem |
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