The purpose of this paper is to explore thoroughly the effects of the change in factor supplies on outputs with commodity prices held constant and to disentangle the intricate involvement between the roles of the factor intensities and factor substitution played in determining such Rybczynski effects in the three-factor, two-good general equilibrium model. It turns out clearly that in place of the factor substitution relations in the cost function, the introduction of cooperative relations between different factors in the production function is helpful for this purpose.
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Paper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number
02.