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Why did Paul Krugman write the theory of interstellar trade?
In that same year, Krugman wrote " The Theory of Interstellar Trade ", a tongue-in-cheek essay on computing interest rates on goods in transit near the speed of light. He says he wrote it to cheer himself up when he was "an oppressed assistant professor". Krugman giving a lecture at the German National Library in Frankfurt in 2008.
What did Paul Krugman say about the home market effect?
Krugman's theory also took into account transportation costs, a key feature in producing the " home market effect ", which would later feature in his work on the new economic geography. The home market effect "states that, ceteris paribus]
When did Paul Krugman develop new trade theory?
It took an interval of eleven years, but ultimately Krugman's work on New Trade Theory (NTT) converged to what is usually called the "new economic geography" (NEG), which Krugman began to develop in a seminal 1991 paper, "Increasing Returns and Economic Geography", published in the Journal of Political Economy.
Where did Paul Krugman get his PhD in economics?
In 1974, Krugman earned his BA summa cum laude in economics from Yale University, where he was a National Merit Scholar. He then went on to pursue a PhD in economics from Massachusetts Institute of Technology (MIT). In 1977, he successfully completed his PhD in three years, with a thesis titled Essays on flexible exchange rates.
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