Variable labour supply and the pure theory of international trade: an empirical note
- Previous writers have shown that variable labour supply may lead to perverse price output responses in the two-sector Heckscher-Ohlin model. This note attempts to assess the empirical likelihood, as opposed to the theoretical possibility, of such perversities. Using a range of plausible parameter values, we conclude that cases of a perverse price-output response consistent with dynamic stability of the model, though theoretically possible, are unlikely to arise in practice.
- Publication status:
- Peer review status:
- Peer reviewed
- Publisher copy:
- Copyright holder:
- Elsevier Science BV
- Copyright date:
- N.B. Professor Neary was based at Trinity College Dublin when this article was first published. The full-text of the article is not available in ORA at this time. Citation: Martin, J. P. & Neary, J. P. (1980). 'Variable labour supply and the pure theory of international trade', Journal of International Economics, 10(4), 549-559. [Available at http://www.sciencedirect.com/science/journal/00221996].
If you are the owner of this record, you can report an update to it here: Report update to this record