 A classroom experiment on the specific factors modelInternational Review of Economics Education, 2021, vol. 37, issue C Abstract: This paper proposes a classroom experiment to illustrate the specific-factors model. In it, students act as decision-makers in an economy comprising two goods and three factors, and each is asked to maximize the value of marginal production by allocating his/her labor force between the two sectors. Through trading products, all players work as a whole economy in pursuit of higher welfare. From their individual perspectives, they can observe the impacts of relative price changes and international labor mobility on productivity and income distribution. The group perspective, meanwhile, reveals the gains arising from trade and welfare. Together with discussion of theoretical predictions, experimental results and case studies, this classroom experiment could foster better learner understanding of the specific-factors model, both individually and collectively. Keywords: Specific-factors model; Experiment design; International trade; Classroom experiment; International labor mobility (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ireced:v:37:y:2021:i:c:s1477388021000062 DOI: 10.1016/j.iree.2021.100214 Access Statistics for this article International Review of Economics Education is currently edited by Guest, Ross More articles in International Review of Economics Education from Elsevier |
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