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Factor endowment -- commodity output relationships in a three-factor, two-good general equilibrium trade model

Yoshiaki Nakada ()

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Abstract: We analyze the Rybczynski sign pattern, which expresses the factor endowment - commodity output relationships in a three-factor, two-good general equilibrium trade model. The relationship determines whether a strong Rybczynski result holds. We search for a sufficient condition for each Rybczynski sign pattern to hold in a systematic manner, which no other studies have derived. We assume factor-intensity ranking is constant. We use the EWS (economy-wide substitution)-ratio vector and the Hadamard product in our analysis. We show that the position of the EWS-ratio vector determines the Rybczynski sign pattern. This article provides a basis for further applications.

Date: 2017-11
New Economics Papers: this item is included in nep-int
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Published in The Natural Resource Economics Review (2017), 22: 61-98. Issue date is 25-Mar-2017. https://repository.kulib.kyoto-u.ac.jp/dspace/handle/2433/219123

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