The comparative statics of industry-level produced-input-use in HOS trade theory
We consider the industry-level use of inputs, per unit of gross output, in a Heckscher-Ohlin-Samuelson model in which not only land and labour but the two produced commodities are used as inputs. The rate of interest is zero throughout and all the standard assumptions are made. When alternative equilibria are compared, the use of land (of labour) is always lower when the real rent (real wage) is higher. But even the assumption of Hicksian substitution everywhere does not permit comparable conclusions concerning the use of produced inputs. This is because a produced input can never become more expensive relative to all three other inputs (unlike a primary input).
Year of publication: |
2005
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Authors: | Steedman, Ian |
Published in: |
Review of Political Economy. - Taylor & Francis Journals, ISSN 0953-8259. - Vol. 17.2005, 3, p. 465-470
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Publisher: |
Taylor & Francis Journals |
Saved in:
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