International Factor Price Equalization in a limited-substitutability technology framework

Erkko Etula

International Review of Economics & Finance, 2009, vol. 18, issue 2, 282-289

Abstract: This paper generalizes the Heckscher-Ohlin trade theory summarized in Samuelson's [Samuelson, P.A., 1949, International Factor Price Equalization Once Again, The Economic Journal 59, 181-197.] calculus treatment to the domain of non-differentiable technologies characterized by discrete alternative Leontief-Sraffa techniques. Demonstrated here is how the close qualitative parallelisms between limited-substitutability technologies and neoclassical marginal-productivity models permit the validity of the theorems of international factor price equalization and their well-known extensions even when smooth marginal productivities cannot obtain.

Keywords: Factor; price; equalization; Limited-substitutability; technology; Discrete; alternative; techniques (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:18:y:2009:i:2:p:282-289

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