Rybczynski Theorem with More Factors than Goods
نویسنده
چکیده
● The weak inequality simply means that each factor is either (a) fully employed or (b) not fully employed. In this case, there are two unknown outputs but there are three (equality or inequality) constraints. ● It is necessary to have two independent equations in order to determine two unknown variables uniquely. ⇒ One of the constraints is redundant, i.e., that resource will not be fully employed. This result also has an implication on the three factor prices.
منابع مشابه
Relative Commodity Prices , and Anything Goes
Fifty years ago T. M. Rybczynski [3] published a frequently referenced note in which he inaugurated a systematic investigation of the comparative statics associated with a change in the endowment of a factor. The questions that he posed are broad and fundamental: How do the prices and consumptions of final goods depend on factor endowments? How do factor prices and consumer wealth vary with cha...
متن کاملThe Rybczynski Theorem, Factor-Price Equalization, and Immigration: Evidence from U.S. States
Recent literature on the labor-market effects of U.S. immigration tends to find little correlation between regional immigrant inflows and changes in relative regional wages. In this paper we examine whether immigration, or endowment shocks more generally, altered U.S. regional output mixes as predicted by the Rybczynski Theorem of Heckscher-Ohlin (HO) trade theory. This theorem describes how re...
متن کاملFactor Content of Trade: Nonhomothetic Preferences and "Missing Trade"
The Heckscher-Ohlin-Vanek (HOV) theorem predicts whether a country will be a net exporter of services of a certain factor and the volume of the factor content of trade given the country's and the world's factor endowment information. Recent empirical work has documented that the measured factor content of trade is too small compared to the theoretical prediction and named this special pattern o...
متن کاملFundamental Trade Theorems under External Economies of Scale
This paper examines the validity of the ̄ve fundamental theorems in the positive theory of international trade in a basic model of external economies of scale. It shows that some of these theorems are valid in more cases than the literature suggests. In particular, if global changes under the speci ̄ed adjustment mechanism are allowed, the Rybczynski and Stolper-Samuelson Theorems are always val...
متن کاملAn Inframarginal Analysis of the Heckscher-Olin Model with Transaction Costs and Technological Comparative Advantage
In the paper we introduce technological comparative advantage and transaction costs into the Heckscher-Olin (HO) model and refine the HO theorem, the Stolper-Samuelson theorem, the Rybczynski theorem, and factor equalization theorem. The refined core theorems can be used to accommodate recent empirical evidence that is at odds with the core theorems.
متن کامل