Samuelson's (1948 and 1949) factor price equalization theorem was the first rigorous proof that trade in goods alone(no factor movements) is sufficient to
This paper examines the status of factor price equalization (FPE) as a scientific hypothesis Every college student of international economics is exposed to
Theorem 2: Under the assumptions of the analysis there exist endowment divi sions which support a minimum wage unemployment equilibrium with an oppo site
In view of constant returns assumption, Ram Singh: (DSE) Factor Price Equalization Lecture 13 2 / 16 Page 3 International Trade: Basic Set-up II the
Two goods: Manufactures and food c Two factors of production: Labor and land The assumptions of the model are: a
After laying down the assumptions of FPE Samuelson writes [p 81 01 " our problem is fnm now on a purely logical one Is 'If H, hen inevita
Paul Samuelson's famous 1948 “factor price equalization theorem” was his assumptions were also enough to produce the Heckscher-Ohlin factor-proportion