On Commodity Prices and Factor Rewards: A Close Look at Sign Patterns
The effect of changes in commodity prices on factor rewards is studied in the multi-commodity, multi-factor case. It is shown that the inverse of the distributive share matrix must satisfy the following restriction: it cannot be anti-symmetric in its sign pattern. This means that one cannot partition the commodities into two groups (I and II) and factors into two groups (A and B), such that all factors in group A benefit (nominally) from all commodity price increases in group I, and simultaneously all factors in group B suffer from all commodity price increases in group II. It turns out that this is also the only sign-pattern restriction imposed by the general nature of the relationship of commodity prices and factor rewards.
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- Jones, Ronald W., 1985. "Relative prices and real factor rewards : A reinterpretation," Economics Letters, Elsevier, vol. 19(1), pages 47-49.
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- Ronald W Jones, 2006. ""Protection And Real Wages": The History Of An Idea," The Japanese Economic Review, Japanese Economic Association, vol. 57(4), pages 457-466.
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- Ronald W. Jones, 1965. "The Structure of Simple General Equilibrium Models," Journal of Political Economy, University of Chicago Press, vol. 73, pages 557.
- Chang, Winston W, 1979. "Some Theorems of Trade and General Equilibrium with Many Goods and Factors," Econometrica, Econometric Society, vol. 47(3), pages 709-26, May.
- Jones, Ronald W., 1975. "Income distribution and effective protection in a multicommodity trade model," Journal of Economic Theory, Elsevier, vol. 11(1), pages 1-15, August.
- Ethier, Wilfred J., 1984. "Higher dimensional issues in trade theory," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 3, pages 131-184 Elsevier.
- Jones, R.W. & Marjit, S. & Mitra, T., 1990. "The Stolper-Samuelson Theorem: Links To Dominant Diagonals," RCER Working Papers 221, University of Rochester - Center for Economic Research (RCER).
- Jones, Ronald W & Mitra, Tapan, 1995. "Share Ribs and Income Distribution," Review of International Economics, Wiley Blackwell, vol. 3(1), pages 36-52, February.
- Ethier, Wilfred, 1974. "Some of the theorems of international trade with many goods and factors," Journal of International Economics, Elsevier, vol. 4(2), pages 199-206, May.
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