Nakada, Yoshiaki (2015): Factor intensities and factor substitution in general equilibrium: A Comment.

PDF
MPRA_paper_66758.pdf Download (336kB)  Preview 
Abstract
Jones and Easton (1983) analyzed how commodity prices affect factor prices in the threefactor twogood general equilibrium trade model. These relationships determine whether ‘a strong Rybczynski result’ holds or not. In subsection 5.2.4., they found that the set of three equations holds for ‘the economywide substitution’ under the assumption of ‘perfect complementarity’. And they applied this to their analysis. In the following, I demonstrate that this is impossible, hence their proof is not plausible. In subsection 5.2.5., they analyzed similarly. But their proof is not plausible, either.
Item Type:  MPRA Paper 

Original Title:  Factor intensities and factor substitution in general equilibrium: A Comment 
English Title:  Factor intensities and factor substitution in general equilibrium: A Comment 
Language:  English 
Keywords:  threefactor twogood model; general equilibrium; Rybczynski result; economywide substitution; perfect complementarity. 
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 > D58  Computable and Other Applied General Equilibrium Models F  International Economics > F1  Trade > F11  Neoclassical Models of Trade 
Item ID:  66758 
Depositing User:  Yoshiaki Nakada 
Date Deposited:  25 Sep 2015 11:06 
Last Modified:  27 Sep 2019 09:53 
References:  Batra, R.N. and Casas F.R., 1976. A synthesis of the HeckscherOhlin and the neoclassical models of international trade. Journal of International Economics 6, 2138. Jones, R.W. and Easton S.T., 1983. Factor intensities and factor substitution in general equilibrium. Journal of International Economics 15, 6599. Sato R. and Koizumi T., 1973. On the Elasticities of Substitution and Complementarity. Oxford Economic Papers, 25, 4456. Suzuki, K., 1983. A synthesis of the HeckscherOhlin and the neoclassical models of international trade: a comment. Journal of International Economics 14, 1414. Thompson, H., 1985. Complementarity in a simple general equilibrium production model. Canadian Journal of Economics 17, 616621. 
URI:  https://mpra.ub.unimuenchen.de/id/eprint/66758 