IDEAS home Printed from https://ideas.repec.org/a/oup/restud/v52y1985i2p311-329..html
   My bibliography  Save this article

Capital Utilization and Factor Specificity

Author

Listed:
  • Roger Betancourt
  • Christopher Clague
  • Arvind Panagariya

Abstract

In this study a model of firm behavior that allows the level of capital utilization to be optimally chosen by cost-minimizing firms is embedded into the standard specific-factors model employed in the international trade literature. The resulting generalization of the specific-factors model provides several new insights. For instance, allowing for variable utilization in either or both sectors gives rise to a greater variety of possible trade patterns than forcing utilization to remain constant. Similarly, international differences in the willingness to work during abnormal hours generate a wider variety of trade patterns than are possible in the standard specific-factors model. Finally, this model allows a reconciliation of the "dual scarcity" explanation of the nineteenth century Anglo-American pattern of trade with the historical evidence on levels of utilization.

Suggested Citation

  • Roger Betancourt & Christopher Clague & Arvind Panagariya, 1985. "Capital Utilization and Factor Specificity," Review of Economic Studies, Oxford University Press, vol. 52(2), pages 311-329.
  • Handle: RePEc:oup:restud:v:52:y:1985:i:2:p:311-329.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/2297624
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Toru Kikuchi & Ngo Van Long, 2011. "Shift Working And Trade In Labour Services With Time Zone Differences," Pacific Economic Review, Wiley Blackwell, vol. 16(5), pages 553-564, December.
    2. Zhang, Yanfang & Zhang, Ming & Liu, Yue & Nie, Rui, 2017. "Enterprise investment, local government intervention and coal overcapacity: The case of China," Energy Policy, Elsevier, vol. 101(C), pages 162-169.
    3. Noritsugu Nakanishi & Ngo Van Long, 2015. "The Distributional and Allocative Impacts of Virtual Labor Mobility across Time Zones through Communication Networks," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 638-662, August.
    4. Serge SHIKHER, 2010. "Technology, factor endowments, and specialization in OECD countries: the role of variable capital utilization," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:restud:v:52:y:1985:i:2:p:311-329.. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.