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Factor Intensity Reversal in a Three‐Factor, Three‐Commodity Model

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  • JAMES R. MELVIN

Abstract

The extension of the notion of factor intensity reversal is extended to three dimensions and it becomes clear that a single phenomenon in two dimensions becomes two distinct phenomena in three. It is shown that one interpretation, the degeneration of A, the coefficient matrix, is the phenomenon which causes problems in trade theory, and this case is easily extended to higher dimensions. Another interpretation uses the Minkowski and Metzler definitions of intensities, and here it is shown that while ‘reversals’ are possible they cause no difficulties unless they are also associated with a degeneration of A. Thus the heart of ‘factor intensity reversal’, i.e. degeneration of A, is easily generalized.

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  • James R. Melvin, 1979. "Factor Intensity Reversal in a Three‐Factor, Three‐Commodity Model," The Economic Record, The Economic Society of Australia, vol. 55(2), pages 164-171, June.
    • Handle: RePEc:bla:ecorec:v:55:y:1979:i:2:p:164-171
    DOI: 10.1111/j.1475-4932.1979.tb02216.x
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    1. Inada, Ken-ichi, 1971. "The Production Coefficient Matrix and the Stolper-Samuelson Condition," Econometrica, Econometric Society, vol. 39(2), pages 219-239, March.
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