Comment on Suzuki’s rebuttal of Batra and Casas

Nakada, Yoshiaki (2015): Comment on Suzuki’s rebuttal of Batra and Casas.

Abstract

Batra and Casas (1976) claimed that ‘a strong Rybczynski result’ arises in the three-factor two-good general equilibrium trade model. In subsequent comments, Suzuki (1983) contended that this could not be the case. Among his comments, Suzuki found that the set of three equations holds for the Allen-partial elasticity of substitution under the assumption of perfect complementarity, and he applied these to his analysis. In the following, I demonstrate that these are impossible, hence his dissenting proof is not plausible.

• Item Type: MPRA Paper
• Language: English
• Keywords: three-factor two-good model; Rybczynski result; perfect complementarity; Allen-partial elasticity of substitution; general equilibrium.
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C68 - Computable General Equilibrium Models; D - Microeconomics > D5 - General Equilibrium and Disequilibrium; F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade

References

Batra, R.N. and Casas F.R., 1976. A synthesis of the Heckscher-Ohlin and the neoclassical models of international trade. Journal of International Economics 6, 21-38.

Jones, R.W. and Easton S.T., 1983. Factor intensities and factor substitution in general equilibrium. Journal of International Economics 15, 65-99.

Suzuki, K., 1983. A synthesis of the Heckscher-Ohlin and the neoclassical models of international trade: a comment. Journal of International Economics 14, 141-4.

Thompson, H., 1985. Complementarity in a simple general equilibrium production model.　Canadian Journal of Economics 17, 616-621.