This paper examines various theorems of trade and general equilibrium in a generalized framework involving arbitrary numbers of goods and factors. It develops structural relations among the changes in outputs, commodity prices, factor rewards, and factor endowments. By finding a way of inverting a bordered matrix with a singular Hessian, the paper derives explicit expressions for the following matrices: the Stolper-Samuelson matrix; the Rybczynski matrix; the matrix which measures the effect of a change in factor endowments upon factor rewards at constant commodity prices; and the matrix which measures the effect of a change in commodity prices upon outputs at constant factor endowments. Various properties of these matrices are used to obtain, among other results, the reciprocity relations and general results on factor-price equalization. The paper also examines the problem of indeterminancy in production when the number of commodities exceeds the rank of the input-coefficient matrix and presents the correct specifications of the supply functions of outputs. Finally a new theorem on the degree of flatness of the production transformation surface is derived.
MLA
Chang, Winston W.. “Some Theorems of Trade and General Equilibrium with Many Goods and Factors.” Econometrica, vol. 47, .no 3, Econometric Society, 1979, pp. 709-726, https://www.jstor.org/stable/1910416
Chicago
Chang, Winston W.. “Some Theorems of Trade and General Equilibrium with Many Goods and Factors.” Econometrica, 47, .no 3, (Econometric Society: 1979), 709-726. https://www.jstor.org/stable/1910416
APA
Chang, W. W. (1979). Some Theorems of Trade and General Equilibrium with Many Goods and Factors. Econometrica, 47(3), 709-726. https://www.jstor.org/stable/1910416
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