When autarky trumps free and costless trade

Theoretical Economics 2026 Open access

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Authors: John Morgan, Justin Tumlinson, Felix Várdy
DOI: 10.3982/te6187
Cited by: 0
References: 6

Abstract

In the context of Krugman (1979)'s canonical New Trade model, we demonstrate that a country is better off in autarky than in free and costless trade, if the productivity of its trading partner is sufficiently low.

Fields of Study & Subjects

Economic Theory and Policy

Publication details

Journal / source
Theoretical Economics
Volume
21
Issue
3
Pages
741–774
Publication date
1 January 2026
Language
EN