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Hansen Nobel 08 Krugman

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<strong>Krugman</strong> 1979, 1980Countries also trade because they are alikeReplace ”perfect competition” with more realisticStiglitz-Dixit (1977) assumptions• In most of OECD consumer preference for diversity –not for satisfying basic needs• Industries enjoy economies of scale – not diminishingreturnsIntra-industry trade in equilibrium• (In addition to trade due to differences, e.g.agricultural products)Anders Chr. <strong>Hansen</strong> 517.12.20<strong>08</strong>

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