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. Weak and strong sustainability indicators, and regional environmental resources2. Foreign direct investment in the Indian telecommunications sector
3. The name is absent
4. The name is absent
5. Clinical Teaching and OSCE in Pediatrics
6. ADJUSTMENT TO GLOBALISATION: A STUDY OF THE FOOTWEAR INDUSTRY IN EUROPE
7. A Note on Productivity Change in European Co-operative Banks: The Luenberger Indicator Approach
8. The name is absent
9. The name is absent
10. The name is absent