Krugman on Interstellar Trade
| Lasse Lien |
You may disagree with Paul Krugman, but you cannot deny that he’s dealing with really, really big issues. Here is the abstract from his most recent paper:
This article extends interplanetary trade theory to an interstellar setting. It is chiefly concerned with the following question: how should interest charges on goods in transit be computed when the goods travel at close to the speed of light? This is a problem because the time taken in transit will appear less to an observer traveling with the goods than to a stationary observer. A solution is derived from economic theory, and two useless but true theorems are proved. (JEL F10, F30)
The full reference and the paper can be found here. The next step is to extend Krugman’s work to intergalaxy trade and wormholes in spacetime.