Tag Archives | Models

Friedman-Phelps Model of Stagflation: Equations, Curves, Criticisms and Conclusion

Friedman-Phelps Model of Stagflation: Equations, Curves, Criticisms and Conclusion! With the existence of stagflation, new economic models appeared during 1970s. M. Friedman and E.S. Phelps sought to explain the phenomenon of stagflation (or the instability of the Phillips curve) in terms of inflationary expectations; changes in inflationary expectations cause shifts in the Phillips curve. According to the Friedman-Phelps model, the [...]

By |2018-08-13T06:52:03+05:30August 13, 2018|Friedman Phelps Model|Comments Off on Friedman-Phelps Model of Stagflation: Equations, Curves, Criticisms and Conclusion
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Technological Gap Model of International Trade | Economics

The Heckscher-Ohlin theory, like the earlier theories of trade, assumed that the techniques of production were given and fixed. Such an assumption can be valid only in a static system. In actual dynamic realities, there can be no place for such an assumption. The technical changes have highly significant effects on production and trade. A technological change may be expressed [...]

By |2018-03-15T11:34:36+05:30March 15, 2018|Models|Comments Off on Technological Gap Model of International Trade | Economics
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The Specific Factor Model of Trade | International Economics

In this article we will discuss about the specific factor model of trade. Single Specific Factor Case: The Heckscher-Ohlin factor endowment theory was put into doubt by the Leontief Paradox. Another objection against the validity of the H-O theory was raised by Stephen Magee. An assumption has been taken in the H-O theory that the factors of production are perfectly [...]

By |2018-03-15T11:34:35+05:30March 15, 2018|Models|Comments Off on The Specific Factor Model of Trade | International Economics
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