Robustness of the Stolper-Samuelson Price Link

30 Pages Posted: 26 Nov 2001  

Henry Thompson

Auburn University - Department of Economics

Date Written: 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.

Keywords: Stolper-Samuelson theorem, robustness, factor intenstiy

JEL Classification: F1

Suggested Citation

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

Henry Thompson (Contact Author)

Auburn University - Department of Economics ( email )

Economics Department
Auburn, AL 36849-5242
United States
334-844-2910 (Phone)
334-844-5639 (Fax)

HOME PAGE: http://www.auburn.edu/~thomph1

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