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Kemp-Wan Theorem |
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Kemp-Wan TheoremThe proposition, due to Kemp and Wan (1976), that any group of countries can form a customs union that is Pareto-improving for the world, so long as nondistorting lump-sum transfers within the union are possible. This is accomplished by setting the vector of common external tariffs so as to leave world prices unchanged.Similar MatchesRybczynski 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). First theorem of welfare economicsFirst theorem of welfare economicsThe proposition of welfare economics that a competitive general equilibrium is Pareto optimal. A corollary is that free trade is Pareto optimal among countries. Heckscher-Ohlin-Vanek TheoremHeckscher-Ohlin-Vanek TheoremThe prediction of the H-O-V Model that a country's net factor content of trade equals its own factor endowment minus its world-expenditure share of the world factor endowment. That is, for country i, Fi = Vi - siVW, where Fi is the factor content of its trade, Vi,VW its and the world's factor endowment, and si its share of world expenditure. Due to Vanek (1968). Spot futures parity theoremSpot futures parity theoremDescribes the theoretically correct relationship between spot and futures prices. Violation of the parity relationship gives rise to arbitrage opportunities. Second theorem of welfare economicsSecond theorem of welfare economicsThe proposition of welfare economics that any Pareto optimal allocation can be attained by a competitive general equilibrium. Further SuggestionsGains from trade theoremSeparation theorem Central Limit Theorem Coase Theorem Interest rate parity theorem Mutual fund theorem Heckscher-Ohlin Theorem Two fund separation theorem Factor Price Equalization Theorem Lerner Symmetry Theorem Stolper-Samuelson Theorem |
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