Rybczynski's Diagram and the Stolper/Samuelson Theorem

Ronald Jones

A chapter in International Trade and Economic Dynamics, 2009, pp 9-12 from Springer

Abstract: In his famous 1955 article, Rybczynski used the familiar production box diagram in order to prove, correctly, the theorem that bears his name. However, the construction he used also suggests that the dual theorem, the Stolper-Samuelson theorem, is incorrect. The problem is that the isoquants in the box diagram were not homothetic to such a degree as to yield false Stolper-Samuelson results.

Keywords: Commodity Price; Geometric Proof; Dual Relationship; Contract Curve; International Trade Theory (search for similar items in EconPapers)
Date: 2009
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DOI: 10.1007/978-3-540-78676-4_3

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