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Robustness of the Stolper-Samuelson Price Link

Henry Thompson

November 2001

The Stolper-Samuelson theorem isolates conditions under which factor intensity determines the direction of factor price adjustments due to price changes in general equilibrium. The present chapter examines the robustness of this "intensity price link" under relaxations of its sufficient conditions, specifying parametric modifications of the comparative static model based on neoclassical production, competitive pricing, and full employment. To some extent, the intensity price link is robust to relaxations of its sufficient conditions.

Number of Pages in PDF File: 30

Keywords: Stolper-Samuelson theorem, robustness, factor intenstiy

JEL Classification: F1

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Date posted: November 26, 2001  

Suggested Citation

Thompson, Henry, Robustness of the Stolper-Samuelson Price Link (November 2001). Available at SSRN: http://ssrn.com/abstract=291259 or http://dx.doi.org/10.2139/ssrn.291259

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