To transfer or to destroy

The transfer problem is by now well understood. In an important book Chichilnisky-Heal provide an example of a related paradox - the destroy paradox - in the context of a Walrasian stable economy. It is evident, however, that the paradox depends on the underlying data - tastes, preferences, and net export positions - of the economy. This paper gives necessary and sufficient conditions on the underlying data of a globally Walrasian stable Leontief economy for the occurrence of this paradox. The relationship between the transfer and destroy paradoxes in an economy with Leontief preferences is explored.