Rights to a free resource lead to distributional deadweight losses in partial equilibrium. The present paper examines related distortions in a general equilibrium model of production with output prices constant for the small open economy. The free resource can result in lower output than a...

Tariffs on imported energy alter production and redistribute income. The present paper examines a small open economy producing two traded goods with capital, labor, and imported energy. A tariff reduces import and domestic factor income but payment to one domestic factor rises. Energy intensive...

A factor proportions model examines the effects of falling energy input and its rising price in the US economy based on a novel production function motivated by the definition of physical work. This physical production function specifies separate interaction of energy and labor with capital,...