Equating pA? with pA* we find that
1 + c(v — 1) + cv
b? = —-----;-----r-----
1 + c(v — 1) + v
Figure 2 shows the autarky price as a function of the budget. Notice
that if b ~≥ ⅜ (1 + c) the size of the budget constraint under autarky is not
binding.

c
2 + c ( v -1)
1 + c ( v -1) + cv
1 + c ( v -1) + v
1(1 + c ) b
Figure 4: Autaky Price Function
5 Trade
Suppose that the small economy trades with the rest of the world at the
world price p* and that the government does not adjust its education policy.
14
More intriguing information
1. The name is absent2. Strategic Investment and Market Integration
3. Stable Distributions
4. Naïve Bayes vs. Decision Trees vs. Neural Networks in the Classification of Training Web Pages
5. On the Relation between Robust and Bayesian Decision Making
6. Private tutoring at transition points in the English education system: its nature, extent and purpose
7. A Rational Analysis of Alternating Search and Reflection Strategies in Problem Solving
8. DISCUSSION: ASSESSING STRUCTURAL CHANGE IN THE DEMAND FOR FOOD COMMODITIES
9. Prizes and Patents: Using Market Signals to Provide Incentives for Innovations
10. Fortschritte bei der Exportorientierung von Dienstleistungsunternehmen