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Factor price
About: Factor price is a research topic. Over the lifetime, 2764 publications have been published within this topic receiving 86176 citations.
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TL;DR: In this article, a generalized cost function is used to evaluate the response of Chinese state-owned construction enterprises to economic reforms from 1985 to 1991, and these variances are regressed against reform variables to determine whether convergence took place.
15 citations
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TL;DR: In this paper, the authors examined how the distribution of prices and consumer welfare change with the number of competitors in a model where consumers di¤er in the amount of price information they have.
Abstract: This paper examines how the distribution of prices and consumer welfare change with the number of competitors in a model where consumers di¤er in the amount of price information they have. We only assume that an increase in the number of competitors results in an increase in the probability that consumers observe more prices. We then show, first, that the lower percentiles of the price distribution must decrease when the number of competitors goes up, while the higher percentiles of the price distribution need not decrease. We next provide a sufficient condition for all price percentiles to decline. In such a situation, some percentiles fall more than others, which leads to asymmetric consumer welfare gains from increased competition. Third, we provide a sufficient condition under which the higher percentiles of the distribution of prices paid by all types of consumers increase. When this happens, the probability that a consumer already paying a high price will pay even a higher price increases and it may even be the case that some consumers experience a welfare loss on average. Nevertheless, the weighted average price paid by consumers - the consumer surplus - always (weakly) decreases with increased competition. We provide an empirical strategy to identify how the response of prices to increased competition varies along the price distribution and use gasoline price data from the Netherlands to illustrate.
15 citations
TL;DR: In a theoretical model, the share of intra-industry trade in an industry's bilateral trade flows is determined by relative factor prices in the trading countries, factor intensity, and the elasticity of substitution in demand between products in the industry as discussed by the authors.
Abstract: In a theoretical model, the share of intra-industry trade in an industry's bilateral trade flows (IIT) is determined by relative factor prices in the trading countries, factor intensity, and the elasticity of substitution in demand between products in the industry The more similar the relative factor prices in different countries, the less "extreme" the factor intensity, while the lower the elasticity of substitution between the products in an industry, the larger the IIT The empirical study confirms these implications Furthermore, tariffs and transport costs are shown to have a greater negative effect on intra-industry trade than on inter-industry trade Copyright 1991 by The editors of the Scandinavian Journal of Economics
15 citations
TL;DR: In this article, the impact of a price ceiling on a competitive market for a good which yields a utility-bearing characteristic is analyzed, and it is shown that price ceiling also leads to a fall in quality, a fall of consumer welfare, and locally a rise in producer welfare.
15 citations
TL;DR: In this paper, the authors used a specific factor model of production to predict output changes and income redistribution in Bolivia with South American free trade, and showed that adjustment in outputs and factor prices in the model are substantial.
Abstract: The pending merger between the Andean Pact and Mercosur will advance South American free trade. Each member country will have to adjust to free trade and the various sectors of each economy will adjust differently. This article uses a specific factor model of production to predict output changes and income redistribution in Bolivia with South American free trade. Adjustments in outputs and factor prices in the model are substantial.
15 citations