Welfare Implications of Equilibrium Supply and Demand Curves in an Open Economy
用线积分理论证明，封闭经济中市场扭曲的净社会福利效应可仅用扭曲市场的均衡供求曲线衡量，但该命题在开放经济中一般不成立，均衡供求曲线后的几何面积无福利意义。
Abstract Line integral theory is used to prove that in a closed economy the net domestic social welfare effects of a market distortion can be captured in the distorted market alone by using equilibrium supply and demand curves. Considerable confusion exists in the applied literature about the proper application of this proposition. It is shown that the proposition does not generally hold for open economies. It is shown that in general neither geometric areas behind equilibrium supply curves nor geometric areas behind equilibrium demand curves have any welfare significance.