The trade-wage debate in a model with nontraded goods: making room for labor economists in labor theory

The Heckscher-Ohlin-Samuelson (HOS) model in international trade theory provides a powerful general-equilibrium paradigm for analyzing the impact of changes in trade on factor returns. In the HOS model, factor returns are determined solely by commodity prices, which are determined on large world mar...

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Autores principales: Robinson, Sherman, Thierfelder, Karen
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 1996
Materias:
Acceso en línea:https://hdl.handle.net/10568/157116
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author Robinson, Sherman
Thierfelder, Karen
author_browse Robinson, Sherman
Thierfelder, Karen
author_facet Robinson, Sherman
Thierfelder, Karen
author_sort Robinson, Sherman
collection Repository of Agricultural Research Outputs (CGSpace)
description The Heckscher-Ohlin-Samuelson (HOS) model in international trade theory provides a powerful general-equilibrium paradigm for analyzing the impact of changes in trade on factor returns. In the HOS model, factor returns are determined solely by commodity prices, which are determined on large world markets. Changes in factor supplies affect the structure of production and trade, but not relative factor returns. In this framework, there is little room for labor economists who focus on partial-equilibrium analysis of supply and demand in factor markets. The authors extend the HOS model to include nontraded goods, distinguishing them theoretically from "nontradable" goods. The resulting 1-2-2-3 model applied to one country with two production activities using two factors of production but consuming a third imported good. We show that the HOS model is a special case of the 1-2-2-3 model when imports and domestic goods are perfect substitutes."
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spelling CGSpace1571162025-11-06T06:08:09Z The trade-wage debate in a model with nontraded goods: making room for labor economists in labor theory Robinson, Sherman Thierfelder, Karen international trade labour economics economic indicators models production economics The Heckscher-Ohlin-Samuelson (HOS) model in international trade theory provides a powerful general-equilibrium paradigm for analyzing the impact of changes in trade on factor returns. In the HOS model, factor returns are determined solely by commodity prices, which are determined on large world markets. Changes in factor supplies affect the structure of production and trade, but not relative factor returns. In this framework, there is little room for labor economists who focus on partial-equilibrium analysis of supply and demand in factor markets. The authors extend the HOS model to include nontraded goods, distinguishing them theoretically from "nontradable" goods. The resulting 1-2-2-3 model applied to one country with two production activities using two factors of production but consuming a third imported good. We show that the HOS model is a special case of the 1-2-2-3 model when imports and domestic goods are perfect substitutes." 1996 2024-10-24T12:47:27Z 2024-10-24T12:47:27Z Working Paper https://hdl.handle.net/10568/157116 en Open Access application/pdf International Food Policy Research Institute Robinson, Sherman; Thierfelder, Karen. 1996. The trade-wage debate in a model with nontraded goods: making room for labor economists in labor theory. TMD Discussion Paper 9. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/157116
spellingShingle international trade
labour economics
economic indicators
models
production economics
Robinson, Sherman
Thierfelder, Karen
The trade-wage debate in a model with nontraded goods: making room for labor economists in labor theory
title The trade-wage debate in a model with nontraded goods: making room for labor economists in labor theory
title_full The trade-wage debate in a model with nontraded goods: making room for labor economists in labor theory
title_fullStr The trade-wage debate in a model with nontraded goods: making room for labor economists in labor theory
title_full_unstemmed The trade-wage debate in a model with nontraded goods: making room for labor economists in labor theory
title_short The trade-wage debate in a model with nontraded goods: making room for labor economists in labor theory
title_sort trade wage debate in a model with nontraded goods making room for labor economists in labor theory
topic international trade
labour economics
economic indicators
models
production economics
url https://hdl.handle.net/10568/157116
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