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Title: |
Simulating a Multifactor General Equilibrium
Model of Production and Trade |
| Author: |
Thompson, Henry |
| Author
Affiliation: |
Auburn U |
| Source: |
International Economic Journal, Summer 1990, v. 4, no. 2, pp. 21-34 |
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Publication Date: |
Summer 1990 |
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Abstract: |
This study builds and simulates a high
dimensional general equilibrium model of production and trade with
inputs of capital and eight separate skilled groups of labor. Constant
returns to scale cannot be rejected in any sector as a null hypothesis.
International capital flows and labor migration are found to have very
small effects on income redistribution, a result which is called near
factor price equalization. Protectionism, on the other hand, has more
substantial effects. Elasticities describing the income redistribution
due to protection in manufacturing, agriculture, and services follow a
pattern suggested by factor intensities. |
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