Economy-wide substitution and Rybczynski sign pattern in a three-factor two-good model

Yoshiaki Nakada ()

MPRA Paper from University Library of Munich, Germany

Abstract: In this article, we analyze how factor endowment affects production in the three-factor two-good general equilibrium trade model. These relationships determine whether ‘a strong Rybczynski result’ holds or not. We search for a sufficient condition for this result to hold (or not to hold). We assume factor intensity ranking is constant. We use ‘the economy-wide substitution’ (or EWS) and EWS-ratios to analyze Rybczynski sign pattern in a systematic manner. We also analyze Stolper-Samuelson sign pattern, which expresses the commodity price-factor price relationships.

Keywords: three-factor two-good model; general equilibrium; Rybczynski result; economy-wide substitution. (search for similar items in EconPapers)
JEL-codes: D58 F11 (search for similar items in EconPapers)
Date: 2015-10-05
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:67863

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