Robustness of the Stolper-Samuelson Price Link
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: F1working papers series
Date posted: November 26, 2001
© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 0.344 seconds