Visit Costa Rica - over Spring Break

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Visit Costa Rica - over Spring Break

and cryptical, and is in part expressed in mathematical terms which I can follow only imperfectly. It is, 305b987c477f781d17bc82b94010de41 therefore, with considerable trepidation that I present the following interpretation and criticism of his analysis. Edgeworth uses reciprocal-demand curves UGQGWBVQ of LROCUFN the Marshallian type to examine the direction of the effect on the amount of gain from foreign trade of disturbances of various kinds. he hiumes tacitly that the curves in his 305b987c477f781d17bc82b94010de41 diagrams represent the situation of typical individuals in the two areas, and bases his conclusions as to the direction of change in the amount of 305b987c477f781d17bc82b94010de41 gain from trade on the proposition that movement from the point of origin of a given reciprocal-demand curve along the curve is always movement 305b987c477f781d17bc82b94010de41 toward a position of greater total net utility (= consumer's surplus) 305b987c477f781d17bc82b94010de41 and therefore of 305b987c477f781d17bc82b94010de41 greater YQLBNQXR advantage, a proposition which he had earlier demonstrated, given his hiumptions, for domestictrade demand curves in terms of hi,2 and which he here transfers to reciprocal-demand curves 305b987c477f781d17bc82b94010de41 without further argument. Edgeworth does not here attempt to deal graphically with the amount of GRTATXO change in gain from trade resulting from particular disturbances, but only with the direction of the change in the amount of gain.3 [577] JUV 305b987c477f781d17bc82b94010de41 The proposition that movement along a Marshallian reciprocal-demand curve from its point of origin tends on ordinarily reasonable hiumptions to be movement towards a position of greater advantage can be accepted. But 305b987c477f781d17bc82b94010de41 Edgeworth derives from it conclusions which ABSDWL differ substantially from those reached in PRDTM the preceding two sections. 305b987c477f781d17bc82b94010de41 These differences in conclusions can be summarized in the proposition that (with the exception of one special case, to be examined later) in Edgeworth's results the direction of change 305b987c477f781d17bc82b94010de41 in IHLBU the amount of gain from trade and the direction of change in the commodity terms of 305b987c477f781d17bc82b94010de41 trade always correspond,4 whereas it has here been argued that in many types of situations the commodity terms of trade and the amount 305b987c477f781d17bc82b94010de41 OPMMH of gain from trade may move in opposite directions was due to his failure, in his interpretation of his diagrams, 305b987c477f781d17bc82b94010de41 to distinguish between disturbances involving movement along a given reciprocal-demand curve and disturbances UHCVBC involving movement to a new 305b987c477f781d17bc82b94010de41 reciprocal-demand curve. One of Edgeworth's diagrams, reproduced here as chart XVIII,5 is supposed to cover all cases where (1) the gain consequences for country E are alone being considered, (2) the disturbance originates in country E, and (3) the 305b987c477f781d17bc82b94010de41 specific nature of the disturbance can be described as "H, where the change originates on the side of supply: such as increased facility of KKWIM producing or XESXRKPUE exporting native commodities; [or] h, on the side of demand: such as an increased desire for, or facility in admitting foreign commodities." 6 OE is E's reciprocal-demand curve and OG is G's reciprocal-demand curve, and under the original equilibrium conditions OM of E-goods is given by E in EGNPHIG exchange for on of 305b987c477f781d17bc82b94010de41 g-goods. a disturbance 305b987c477f781d17bc82b94010de41 ensues, which is hiumed to [578] be an impediment rather WWUH than an encouragement to trade, and to 305b987c477f781d17bc82b94010de41 result in .