EconPapers    
Economics at your fingertips  
 

The effects of energy and commodity prices on commodity output in a three-factor, two-good general equilibrium trade model

Yoshiaki Nakada ()

Papers from arXiv.org

Abstract: We analyze the effects of energy and commodity prices on commodity output using a three-factor, two-good general equilibrium trade model with three factors: capital, labor, and imported energy. We derive a sufficient condition for each sign pattern of each relationship to hold, which no other studies have derived. We assume factor-intensity ranking is constant and use the EWS (economy-wide substitution)-ratio vector and the Hadamard product in the analysis. The results reveal that the position of the EWS-ratio vector determines the relationships. Specifically, the strengthening (resp. reduction) of import restrictions can increase (resp. decrease) the commodity output of exportables, if capital and labor, domestic factors, are economy-wide complements. This seems paradoxical.

New Economics Papers: this item is included in nep-ene
Date: 2017-11, Revised 2018-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://arxiv.org/pdf/1711.10096 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:1711.10096

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().

 
Page updated 2019-03-31
Handle: RePEc:arx:papers:1711.10096