In Order to Compute an Index of Total Factor Productivity, It Is Necessary to Know Returns to Scale and Interval Valuations of Quasi-Fixed Factors; Neither Are Directly Observable. in Resource Industries This Problem Is Compounded by the Facts That Returns to Scale Are Important and That There...

We Embed an Efficiency Wage View of the Labor Market a la Shapiro and Stiglitz (1984) Into the Standard Hecksher-Ohlin Framework. We Demonstrate How a Small Trading Country Can Utilize an Activist Commercial Policy to Remedy Labor Market Inefficiencies. Laissez-Faire Is Not Optimal. the Optimal...