Abstract: | In the discussion of the qualitative inferences to be drawnfrom the signs of s and c3 [OEP 43.2 p. 448], possibilities(ii), (iii) and (iv) and the beginning of the immediately followingparagraph should read:- if both s and c3 are positive and ß31> ß32
- if s is positive and c3 is negative theneither ß31and ß32 are both positive andß31 > ß32,or they are both negativeand |ß32|>|ß31|,or ß31 ispositive and ß32 is negative.
- if sis negative andc3 is positive then either ß31and ß32 areboth positive and ß32 < ß31,or theyare both negative and |ß31| > |ß32|,or ß31 is negative and ß32 is positive.
Notice that without first confirming that s = 0 when c3 0 nothingmuch can be said about the factor content of trade by lookingat c3 alone; for, in terms of signs of ß31 and ß32,c3 < 0 precludes only the combination (ß31 <0 & ß32 > 0); and c3 > 0 precludes onlythe combination (ß31 > 0 & ß32 <0). Similarly... |