Multi-cone equilibrium


 

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Multi-cone equilibrium

A free-trade equilibrium in the Heckscher-Ohlin Model in which prices are such that all goods cannot be produced within a single country, and instead there are multiple diversification cones. This, or a two cone equilibrium, will arise if countries' factor endowments are sufficiently dissimilar compared to factor intensities of industries. Contrasts with one cone equilibrium.



Similar Matches

Equilibrium

Equilibrium

The stable state of the system. See: Attractor.


Equilibrium

Equilibrium

1. A state of balance between offsetting forces for change, so that no change occurs. 2. In competitive markets, equality of supply and demand.


General equilibrium

General equilibrium

Equality of supply and demand in all markets of an economy simultaneously. The number of markets does not have to be large. The simplest Ricardian model has markets only for two goods and one factor, labor, but this is a general equilibrium model. Contrasts with partial equilibrium.


Equilibrium position

Equilibrium position

Same as equilibrium level, though perhaps of several variables at once, perhaps as displayed in a graph.


Partial equilibrium

Partial equilibrium

Equality of supply and demand in only a subset of an economy's markets -- usually just one -- taking variables from other markets as given. Partial equilibrium models are appropriate for products that constitute only a negligibly small part of the economy. They are used routinely (not always appropriately) for analysis of trade policies in single industries. Contrasts with general equilibrium.


Further Suggestions

One cone equilibrium
Equilibrium price
Nash equilibrium
Two cone equilibrium
Equilibrium rate of interest
Disequilibrium
Balance of payments equilibrium
Equilibrium level
Computable general equilibrium
Equilibrium exchange rate
Market equilibrium


 
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