Table Of ContentInternational Trade and Finance
Publisher's Note
Two further volumes of ESSAYS IN HONOUR OF JAN TINBERGEN,
also edited by Willy Sellekaerts, are published simultaneously:
ECONOMIC DEVELOPMENT AND PLANNING and ECONOMETRICS AND
ECONOMIC THEORY.
Jan Tinbergen
International Trade
and Finance
Essays in Honour of Jan Tinbergen
Edited by
Willy Sellekaerts
Palgrave Macmillan
© Editorial matter and selection, Willy Sellekaerts 1973
© Introduction, Swedish Journal of Economics 1969
© Chapter 1, Richard E. Caves 1973
© Chapter 2, Randall Hinshaw 1973
© Chapter 3, Peter B. Kenen 1973
© Chapter 4, C. P. Kindleberger 1973
© Chapter 5, Anthony Y. C. Koo 1973
© Chapter 6, Mordechai E. Kreinin and H. Robert Heller 1973
© Chapter 7, Anne O. Krueger 1973
© Chapter 8, Jay H. Levin
© Chapter 9, Raymond F. Mikesel11973
© Chapter 10, Paul A. Samuelson 1973
© Chapter 11, Erik Thorbecke and Alfred J. Field, Jr., 1973
© Chapter 12, Jaraslav Vanek and Trent J. Bertrand 1973
Softcover reprint of the hardcover 1st edition 1973 978-0-333-12852-7
All rights reserved. No part of this publication may be
reproduced or transmitted, in any form or by any means,
without permission.
First published 1974 by
THE MACMILLAN PRESS LTD
London and Basingstoke
Associated companies in New York
Dublin Melbourne Johannesburg and Madras
SBN 333 12852 4
ISBN 978-1-349-01271-8 ISBN 978-1-349-01269-5 (eBook)
DOI10.1007/978-1-349-01269-5
Contents
Preface vii
Introduction Bent Hansen 1
1 The Economics of Reciprocity: Theory and Evidence
on Bilateral Trading Arrangements Richard E.
Caves 17
2 Elasticity Pessimism, Absorption, and Flexible Ex-
change Rates Randall Hinshaw 55
3 Economic Policy in a Small Economy Peter B.
Jrenen 73
4 Economic Integration via External Markets and
Factors C. P. Kindleberger 103
5 Decreasing Marginal Cost and the Pattern of Trade
Anthony Y. C. Jroo 117
6 Adjustment Costs, Optimal Currency Areas, and
International Reserves M ordechai E. Jrreinin and
H. Robert Heller 127
7 The Role of Home Goods and Money in Exchange
Rate Adjustment Anne 0. Jrrueger 141
8 A Two-Country Model of the Gold Standard Jay
H. Levin 163
9 Private Short-Term Capital Flows and the Eurodollar
Market Raymond F. Mikesell 185
10 Equalisation of Factor Prices by Sufficiently Diver
sified Production under Conditions of Balanced
Demand Paul A. Samuelson 213
11 A Ten-Region Model of World Trade Erik Thor-
becke and Alfred J. Field, Jr. 221
12 Effective Protection and Resource Allocation Jara-
slav Vanek and Trent J. Bertrand 271
Bibliography of Jan Tinbergen
Index 289
Preface
In 1969 Ragnar Frisch and Jan Tinbergen were selected to share
the first Nobel Prize in Economics. As former students of
Professor Tinbergen my wife and I decided to honour him by
compiling and editing a collection of previously unpublished
articles, written by leading economists. In order to create a
lasting monument to Jan Tinbergen we decided to use the
royalties from the volume to create a scholarship fund from
which outstanding Dutch students in economics will receive
financial assistance during their first year of study in the North
American university of their choice. Further details will later be
arranged with the Netherlands School of Economics in
Rotterdam.
Several North American and European economists were
invited to write a paper, preferably focusing on Tinbergen's
pathbreaking work in international trade, economic develop
ment and planning, econometrics and economic theory. Most
invited economists readily accepted the invitation. I thank all
the contributors for their continuous interest and spontaneous
co-operation during the two years between the mailing of the
invitations and the completion of the manuscript.
Although a Nobel Prizewinner does not need to be introduced
to the scholars of his discipline, I decided to include in this
collection of essays a paper written by Bent Hansen, in which he
not only skilfully appraises Professor Tinbergen's contributions
to economics, but also pictures Tinbergen the man as a humani
tarian idealist, a worthy candidate for the Nobel Peace Prize.
I thank the Swedish Journal of Economics, and in particular
Peter Bohm, for giving me permission to reprint Bent Hansen's
paper. As an append~ to each of the three volumes of this
Festschrift, a selected bibliography of Jan Tinbergen's contri
butions to economics has been included.
In addition to the contributors, many persons have helped to
make the publication of this collection of essays in honour of
Jan Tinbergen possible. I thank Professor Dole Anderson,
Director of the Institute for International Business and Econ
omic Development of Michigan State University, who supported
viii Preface
my idea and made the facilities of the Institute available to
invite the contributors. The Faculty of Social Sciences of the
University of Ottawa also contributed to the success of this
volume. I thank Patrick Meany of The Macmillan Company of
Canada for his assistance in the publication of the Festschrift.
Above all, my wife, Brigitte made the publication of this
Festschrift feasible, by providing invaluable technical and
editorial assistance.
WILLY SELLEKAERTS
Ottawa,
November 1971
Introduction
JAN TINBERGEN
An Appraisal of his
Contributions to Economics*
BY BENT HANSEN
PROFESSOR Jan Tinbergen was born on 12 April 1903. He
graduated from Leiden University where he also obtained his
doctoral degree. From 1929 to 1945 he was, with certain
interruptions, an official of the Netherlands' Central Bureau of
Statistics. As from 1933 he has also been a professor of
economics at the Netherlands School of Economics at Rotter
dam. During the years 1936 to 1938 he served on the staff of the
League of Nations at Geneva. At the end of World War II, in
1945, he was appointed Director of the newly created Central
Planning Bureau of the Netherlands. He resigned from this
position in 1955 and has since then - besides teaching and
research - served as an adviser and consultant to numerous
governments and international organisations. As from 1966 he
is the Chairman of the United Nation's Committee for Develop
ment Planning. A considerable number of universities have
awarded him honorary degrees.
The message that Professors Ragnar Frisch and Jan Tin
bergen were selected to share the first Nobel Prize in Economics
was received by the profession with great satisfaction. Few
*
Reprinted with the permission of the Swedish Journal of Economics.
The original reference: Hansen, Bent, 'Jan Tinbergen: An Appraisal of his
Contributions to Economics', Swedish Journal of Economics, LXXI (1969)
325-36.
