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Comment on Suzuki’s rebuttal of Batra and Casas

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  • Nakada, Yoshiaki

Abstract

Batra and Casas (1976) claimed that ‘a strong Rybczynski result’ arises in the three-factor two-good general equilibrium trade model. In subsequent comments, Suzuki (1983) contended that this could not be the case. Among his comments, Suzuki found that the set of three equations holds for the Allen-partial elasticity of substitution under the assumption of perfect complementarity, and he applied these to his analysis. In the following, I demonstrate that these are impossible, hence his dissenting proof is not plausible.

Suggested Citation

  • Nakada, Yoshiaki, 2015. "Comment on Suzuki’s rebuttal of Batra and Casas," MPRA Paper 66909, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:66909
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    File URL: https://mpra.ub.uni-muenchen.de/66909/1/MPRA_paper_66909.pdf
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    References listed on IDEAS

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    1. Suzuki, Katsuhiko, 1983. "A synthesis of the heckscher-ohlin and the neoclassical models of international trade : A Comment," Journal of International Economics, Elsevier, vol. 14(1-2), pages 141-144, February.
    2. Batra, Raveendra N. & Casas, Francisco R., 1976. "A synthesis of the Heckscher-Ohlin and the neoclassical models of international trade," Journal of International Economics, Elsevier, vol. 6(1), pages 21-38, February.
    3. Jones, Ronald W. & Easton, Stephen T., 1983. "Factor intensities and factor substitution in general equilibrium," Journal of International Economics, Elsevier, vol. 15(1-2), pages 65-99, August.
    4. Henry Thompson, 1985. "Complementarity in a Simple General Equilibrium Production Model," Canadian Journal of Economics, Canadian Economics Association, vol. 18(3), pages 616-621, August.
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    Cited by:

    1. Nakada, Yoshiaki, 2015. "Economy-wide substitution and Rybczynski sign pattern in a three-factor two-good model," MPRA Paper 67863, University Library of Munich, Germany.
    2. Yoshiaki Nakada, 2018. "Factor endowment--commodity output relationships in a three-factor two-good general equilibrium trade model: Further analysis," Papers 1805.06129, arXiv.org, revised Oct 2018.

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    More about this item

    Keywords

    three-factor two-good model; Rybczynski result; perfect complementarity; Allen-partial elasticity of substitution; general equilibrium.;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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