Factor intensities and factor substitution in general equilibrium: A Comment

Yoshiaki Nakada ()

MPRA Paper from University Library of Munich, Germany

Abstract: Jones and Easton (1983) analyzed how commodity prices affect factor prices in the three-factor two-good general equilibrium trade model. These relationships determine whether ‘a strong Rybczynski result’ holds or not. In subsection 5.2.4., they found that the set of three equations holds for ‘the economy-wide substitution’ under the assumption of ‘perfect complementarity’. And they applied this to their analysis. In the following, I demonstrate that this is impossible, hence their proof is not plausible. In subsection 5.2.5., they analyzed similarly. But their proof is not plausible, either.

Keywords: three-factor two-good model; general equilibrium; Rybczynski result; economy-wide substitution; perfect complementarity. (search for similar items in EconPapers)
JEL-codes: C68 D58 F11 (search for similar items in EconPapers)
Date: 2015-09-18
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (3)

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