Generalizing the Stolper–Samuelson Theorem: A Tale of Two Matrices

Past attempts to generalize the Stolper–Samuelson theorem have used a matrix of real income terms which are sufficient but not necessary to define a change in utility. One can define a second matrix of terms which are necessary and sufficient for a change in indirect utility. Using this matrix, the paper extends the Stolper–Samuelson theorem to a model of any dimensions and to households which have diversified ownership of factors. The theorem states that there is a positive and a negative element in every row and every column of the matrix showing household responses to changes in goods prices.     

Trade and Personal Distribution of Wealth and Income: Beyond the Stolper–Samuelson Theorem

The effect of international trade on personal distribution of wealth and income is examined via the Stolper–Samuelson Theorem. It is shown that free trade between North and South increases (decreases) wealth and income inequality in the North (South). A concept of three classes – lower, middle and upper – is developed. It is shown that North–South free trade in goods leads to a middle class squeeze in the North and a middle class expansion in the South.     

The Balassa–Samuelson Effect in a Developing Country

Some Asian countries experience small real exchange rate appreciations or even a real depreciation despite a fast growth in tradable productivity. A key‐characteristic of these countries is that they are constrained on capital inflows. Is the Balassa–Samuelson theory still valid in those countries? Are there other factors likely to explain real exchange rate (RER) changes? To address these questions, we develop a two‐sector model in which a small open economy faces a constraint on capital inflows. In this setting, the RER does not only depend on productivity, but also on other factors like the rate of time preference, the age dependency ratio or the level of the external constraint. A calibration of the constrained economy model seems to match at least qualitatively empirical evidence for China, Hong Kong, Indonesia, Malaysia, Thailand, and Singapore, between 1970 and 1992.     

Factor or Industry Cleavages in Trade Policy? An Empirical Analysis of the Stolper–Samuelson Theorem

If factors of production are mobile between industries, the Stolper–Samuelson Theorem predicts that cleavages over trade policy will form along factor lines. Conversely, if factors are immobile, cleavages will form along industry lines. These two hypotheses are empirically examined using micro-data from a survey conducted during the 1988 Canadian federal election—a de facto referendum on free trade. Factors of production are found to be important determinants of preferences on trade policy. However, the industry of employment also helps determine preferences on trade policy. These results are consistent with partial factor mobility.     

The Balassa–Samuelson Hypothesis in the Asia‐Pacific Region Revisited*

In a study of nine Asia‐Pacific countries' real exchange rates, Chinn (2000) finds some evidence in support of the Balassa (1964) and Samuelson (1964) hypothesis. His findings, however, are based on the application of a model containing several potentially restrictive simplifying assumptions to a dataset of limited span. Consequently, we look to assess the effect on Chinn's findings of considerably increasing the sample size and relaxing these assumptions. We find a comparable level of evidence for the Balassa–Samuelson hypothesis when applying Chinn's model to the larger sample, but obtain significantly greater support when a less restrictive approach is adopted.     

More Evidence in Favor of the Balassa–Samuelson Hypothesis

This study provides additional evidence of a significant long-run relationship between the relative price of nontradables and real output, consistent with the productivity-bias hypothesis of Balassa and Samuelson. The results, however, also indicate that additional permanent supply shocks, specifically real oil prices, need to be considered. In every case, relative prices are significantly affected by permanent innovations in real output and real oil prices. The general lack of evidence of cointegration, however, points to the possibility that additional long-run determinants of relative prices have been omitted.     

Capital–Labor Ratios and Total Factor Productivity in the Balassa–Samuelson Model

The paper investigates the relationship between sectoral capital–labor ratios and total factor productivity (TFP) in the context of the Balassa–Samuelson model. It is shown that, under certain assumptions, the model implies that both traded- and nontraded-goods sectors' capital–labor ratios should be cointegrated with the traded -goods sector's TFP. Evidence from an intersectoral database for 14 OECD countries broadly supports this implication of the model. In addition to shedding light on the evolution of sectoral capital–labor ratios, the results also alleviate concerns regarding the reliability of capital stock data.     

Stolper–Samuelson Time Series: Long‐Term US Wage Adjustment

Factor prices adjust to product prices in the Stolper–Samuelson theorem of the factor proportions model. The present paper estimates adjustment in the average US wage to changes in prices of manufactures and services with yearly data from 1949 to 2006. Difference equation analysis is based directly on the comparative static factor proportions model. Factors of production are fixed capital assets and the labor force. Results have implications for theory and policy.     

Consumption-loan type models the Samuelson case

This is a further study of the overlapping generations model with fixed amount of fiat money. We show that when the economy is Samuelsonian then there exists some Pareto optimal stationary competitive equilibrium from some initial money holdings. Moreover, if the steady-state interest factor is less than unity, then a non-monetary Pareto optimal equilibrium exists from any initial money endowments.     

Reallocation and restructuring: A generalization of the Balassa–Samuelson effect

Despite its strong theoretical position when it comes to explaining inflation in transition economies, the empirical findings of the Balassa–Samuelson (B–S) effect assign only a minor role to structural inflation – to the disappointment of analysts and policymakers. This article points to 3 theory-based contributing factors to these ‘weak’ findings and offers an alternative methodological approach. First, a short-term focus makes B–S prone to underestimating the magnitude of the productivity growth differential. Second, the conventional demand side CPI based definition of sectoral value added reduces the extent to which the productivity growth differential is passed through to inflation. Third, by ignoring the dependence between the 2 main B–S components, a further downward bias to the productivity growth pass through comes about. The key to our proposed alternative methodology centres on an endogenous relation between the productivity growth differential and sector sizes. Together with the long-run supply-side approach this allows us to capture inflation drivers that conventional B–S fails to incorporate. In our extension to the conventional B–S model a reduced productivity growth differential can be compensated by an increased productivity growth pass-through, or vice versa – with the effect of augmenting inflation pressure. Hence, the link between productivity growth differentials and the dynamics of structural inflation is shown to be more complex than previously assumed.     

经济学家怎么会犯如此错误？北大核心CSSCISSCI

经济学能够成为一门学科应该归功于亚当·斯密,他于1776年出版了《国富论》。在接下来的160年里,经济学理论得到了长足发展,其核心理念就是：相信市场。诚然,经济学家也承认,某些情况下市场可能失灵,其中最重要的就是“外部经济效果”——即人们在无需付出代价的情况下,     

Beyond Balassa–Samuelson: Real appreciation in tradables in transition countries1

We decompose real appreciation in tradables derived from producer price indexes in three Central European countries between the pricing‐to‐market component (disparity) and the local relative price component (the substitution ratio). Appreciation is only partially explained by local relative prices. The rest is absorbed by disparity, depending on the size of the no‐arbitrage band. The observed disparity fluctuates in a wider band for differentiated products than for commodity like goods.     

The Second Welfare Theorem in Economies with Non‐Walrasian Markets

The standard version of the second welfare theorem assumes that market operations produce Walrasian outcomes. Therefore, if there are individuals who can manipulate prices, the conclusion of the second welfare theorem is questionable. In this paper, we address the decentralization of a Pareto‐optimal allocation, when markets are non‐Walrasian. Our objective in this paper is to develop a game which can implement Pareto‐optimal allocations as Nash equilibria of strategic exchange in markets. In this way, we develop a version of the second welfare theorem for economies where markets are strategic.     

对科斯定理的修正

科斯定理使许多人相信,明确产权就会解决外部性问题.J.E.Stiglitz等人对科斯定理提出了质疑.作者通过对镶黄旗的调查发现,在集体经营牧草地时期存在"超额放牧"现象,而在私人经营牧草地时期存在"过度放牧"现象,这对科斯定理提出了挑战.本文认为科斯定理强调了产权的重要性,贡献是巨大的,但也存在局限性,有必要进行修正.本文认为,在解决"过度放牧"等外部性问题时,最有效的方法是采取"产权一政府干预"双约束机制和"事前干预法".     

对科斯定理的修正

科斯定理使许多人相信,明确产权就会解决外部性问题。J.E.Stiglitz等人对科斯定理提出了质疑。作者通过对镶黄旗的调查发现,在集体经营牧草地时期存在“超额放牧”现象,而在私人经营牧草地时期存在“过度放牧”现象,这对科斯定理提出了挑战。本文认为科斯定理强调了产权的重要性,贡献是巨大的,但也存在局限性,有必要进行修正。本文认为,在解决“过度放牧”等外部性问题时,最有效的方法是采取“产权—政府干预”双约束机制和“事前干预法”。