The Generalized Theory of Transfers and Welfare: Bilateral Transfers in a Multilateral World

Authors

Jagdish N. Bhagwati, Columbia Law SchoolFollow
Richard A. Brecher, Carleton University
Tatsuo Hatta, Johns Hopkins University

Document Type

Article

Publication Date

1983

Abstract

Paul Samuelson's (1952, 1954) classic papers on the transfer problem addressed two separate analytical issues: the "positive" effect of a transfer on the terms of trade; and the welfare effect of the transfer on the donor and the recipient.

Since then, a considerable body of literature has grown up on the positive analysis. While Samuelson (1954) himself had extended the 2 X 2 X 2 free trade analysis to allow for tariffs and transport costs, subsequent writers have analyzed other extensions of the model: for example, to allow for nontraded goods as with leisure in Samuelson (1971); or general nontraded goods in John Chipman (1974) and Ronald Jones (1970, 1975).

Disciplines

Economics | International Economics | Law

Comments

Copyright © 1983 by the American Economic Association.

Recommended Citation

Jagdish N. Bhagwati, Richard A. Brecher & Tatsuo Hatta, The Generalized Theory of Transfers and Welfare: Bilateral Transfers in a Multilateral World, 73 Am. Econ. Rev. 606 (1983).
Available at: https://scholarship.law.columbia.edu/faculty_scholarship/3783