In an earlier paper the authors clarified the relationship between the stability of long--run equilibrium and the possibility of paradoxical comparative statics in the Lerner--Samuelson two--by--two model of production with factor--market distortions (see "Review of International Economics" 9...

In the late 1960s and early 1970s there was a strong revival of interest in the role of factor-market distortions in those branches of our subject which rely on the Lerner-Samuelson two-by-two model of production. Among the legacies from that period were several comparative statical propositions...