Showing papers in "The Economic Journal in 1972"

Technology, Trade and Factor Mobility

Abstract: The well-known factor price equalization theorem is often invoked to provide trade theorists with justification for the conventional assumption of complete international immobility of factors of production. If conditions of the theorem are satisfied, and free trade does in fact give rise to the equalization of factor returns, then it is inconsequential in which country production takes place. Mundell's original analysis then brings us full circle to the "commodity price equalization theorem". If the conditions of the factor price equalization theorem are met, but a tariff on trade is imposed, then factor mobility can replace trade in establishing productive efficiency. Recent work by Jones and Kemp have analysed further the implications of introducing factor mobility and in particular capital mobility into the analysis of international trade. However, these have concentrated on generating optimum tariff and tax( on capital services) formulae for the individual country trying to maximize its own welfare. The present paper is more in the tradition of the Mundell analysis in that we are more concerned with world efficiency in production--that is, in maximizing potential world welfare. (This abstract was borrowed from another version of this item.)

Reswitching and Primary Input Use

Abstract: The object of this essay is to explain the consequences of the existence of a positive rate of profit in the neoclassical model of long-run general equilibrium,1 in which two commodities are produced by means of land, labour and produced commodities