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Robustness of the Stolper-Samuelson Price Link


Henry Thompson



November 2001


Abstract:     
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

working papers series


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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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