Trading on a Simplex: An Eaton-Kortum Diagram

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Citation

Aguiar, Mark, Manuel Amador, and Doireann Fitzgerald (2026): “Trading on a Simplex: An Eaton-Kortum Diagram”.

Abstract

We present a deterministic re-interpretation of the Eaton and Kortum (2002) Ricardian model of international trade. The representation can be interpreted as a Dornbusch–Fischer–Samuelson generalization, amenable to diagrammatic analysis, to an N-country world under specific technological restrictions that nest Eaton-Kortum.