EBSLG

 

 
European Business Schools Librarian's Group
Home About Series Subject/JEL codes Advanced Search
Kiel Institute for World Economics Kiel Working Papers, Kiel Institute for World Economics

No 1300:
Notes on Factor Price Equality and Biased Technical Change in a Two-Cone Trade Model

Daniel Becker and Erich Gundlach

Abstract: We reconsider the effects of long-run economic growth on relative factor prices across cones of specialization. We model economic growth as exogenous technical change. Allowing for capital biased technical change with a sector bias and for endogenous commodity prices, we find that economic growth may increase or decrease factor price differences across cones. For a neutral demand side and capital biased growth in the most capital intensive sector, we find that economic growth encourages less factor price diversity across cones.

Keywords: factor price equality, economic growth, two cone trade model; (follow links to similar papers)

JEL-Codes: F11,; O40; (follow links to similar papers)

17 pages, September 2006

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Downloadable files:

kap1300.pdf 
kap%201300%20revised.pdf    PDF-file
Download Statistics


Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design Joakim Ekebom

Handle: RePEc:kie:kieliw:1300 This page was generated on 2015-03-29 21:03:04