Lapan_Econ 655
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چکیده
ii. Suppose the specific factor model is extended to N goods and (N+1) factors: one factor that is specific to each sector and only one mobile factor (labor). Given this structure, how does an increase in the price of good 1 affect the output of each good and the real return to each factor? Do these results depend on the specification of technology, or would they hold for any model with N goods and (N+1) factors?
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Lapan_Econ 655
b) Consider the Dornbusch-Fischer-Samuelson model of a two country Ricardian world with a continuum of goods. Call the countries US, Europe (E); index the goods by z ; let denote the labor requirement per unit output in each country, and order the goods so that: Œ 0 1 , A z A z U E b g b g , d z dz bb g < 0, where b z A z A z E U b g b g b g d ∫ i . Assume preferences are CobbDouglas and intern...
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