2020 Volume 23 Pages 163-181
This paper extends the results on trade and welfare obtained in Ohyama(1972) in the case of a traditional world economy with a finite number of goods to those in the case of a world economy over a discrete-time infinite horizon with l∞ the space of all bounded sequences, as the underlying commodity space. The case with l∞ is a typical special case of economies with an infinite number of goods. In this paper, it is shown that the main results obtained in Ohyama(1972) still hold in the world economy over a discrete-time infinite horizon by following the method used in Ohyama(1972). It turns out that Ohyama(1972)’s method is very general in the sense that it also applies to more general cases including world economies with infinitely many goods.
JEL Classification:D51;D61;F11;F15
