Factor mobility and the general equilibrium model of production

Hill, John K.; Mendez, JoséA.

doi:10.1016/0022-1996(83)90039-9

Cited by 30 publications

(19 citation statements)

References 8 publications

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“…In this case, we will want to estimate a comprehensive model that includes both factors and industries. The comprehensive empirical model is consistent with the Hill and Mendez (1983) partialfactor mobility model discussed in section 2. The comprehensive model includes factors of production and industries:…”

Section: The Empirical Approachmentioning

confidence: 91%

Factor or Industry Cleavages in Trade Policy? An Empirical Analysis of the Stolper–Samuelson Theorem

Beaulieu¹

2002

Economics & Politics

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If factors of production are mobile between industries, the Stolper–Samuelson Theorem predicts that cleavages over trade policy will form along factor lines. Conversely, if factors are immobile, cleavages will form along industry lines. These two hypotheses are empirically examined using micro‐data from a survey conducted during the 1988 Canadian federal election—a de facto referendum on free trade. Factors of production are found to be important determinants of preferences on trade policy. However, the industry of employment also helps determine preferences on trade policy. These results are consistent with partial factor mobility.

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Section: The Empirical Approachmentioning

confidence: 91%

Factor or Industry Cleavages in Trade Policy? An Empirical Analysis of the Stolper–Samuelson Theorem

Beaulieu¹

2002

Economics & Politics

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“…The temporary equilibrium allocation is described by the static equilibrium of the SF model. The long-run equilibrium shows properties that connect our model with the literature on partial factor mobility in static models of production (Mussa, 1982;Grossman, 1983;Hill and Méndez, 1983). One of the paper's contributions is that it provides explicit dynamic foundations for partial mobility.…”

Section: Introductionmentioning

confidence: 76%

“…The ambiguity of reactions to capital inflows demonstrates that our model bears a strong resemblence to the static partial-factor-mobility models of Mussa (1982), Grossman (1983), and Hill and Méndez (1983). The characteristic element of the latter models is the (implicit or explicit) assumption of a concave intersectoral factortransformation curve.…”

Section: Qre and Adjustment In The Sf Model 677mentioning

confidence: 87%

Qualitatively Rational Expectations and Adjustment in the Specific‐Factors Model

Albert

Meckl

1998

Rev International Economics

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This paper considers adjustment in a dynamic specific-factors model with endogenous capital stocks. Investment is analyzed under the assumption that expectations are rational with respect to qualitative aspects of the adjustment process (qualitatively rational expectations, QRE). QRE leave considerable scope for systematic errors in expectations formation. Adjustment under rational expectations is similar to QRE adjustment; however, only in the former case is the speed of adjustment optimal. Overshooting of capital stocks is possible and may be optimal. Comparative-static analysis shows an asymmetry between inflows of labor and capital: only capital inflows may cause a Rybczynski effect.

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“…This approach may be useful in this case since the results do not unequivocally rule out the factor model. A comprehensive model is also useful because it is consistent with the partial mobility model developed by Hill and Mendez (1983). As with the factor model analysis reported in Table 2, the comprehensive model is estimated for two different measures of skill endowment: the occupation-based measure of skill and the education-based measure of skill.…”

Section: The Comprehensive Modelmentioning

confidence: 99%

The Stolper–Samuelson Theorem Faces Congress

Beaulieu

2002

Rev International Economics

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The factor-industry detachment corollary of the Stolper-Samuelson theorem predicts that the economic interests of trade policy are independent of industry and depend only on the type of factor ownership. This paper examines whether congressional voting patterns on trade policy are determined by the factor endowment of the constituency or by its industrial composition. The industry model of trade policy determination is not rejected by the empirical tests while the results for the factor model are ambiguous. This provides evidence that the literature examining congressional voting patterns on broad-based trade policy should reevaluate the maintained assumption that factors do not matter.

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Factor mobility and the general equilibrium model of production

Cited by 30 publications

References 8 publications

Factor or Industry Cleavages in Trade Policy? An Empirical Analysis of the Stolper–Samuelson Theorem

Factor or Industry Cleavages in Trade Policy? An Empirical Analysis of the Stolper–Samuelson Theorem

Qualitatively Rational Expectations and Adjustment in the Specific‐Factors Model

The Stolper–Samuelson Theorem Faces Congress

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