A Geometric Comparison of the Transformation Loci with Specific and Mobile Capital

Autor/inn/en	Colander, David; Gilbert, John; Oladi, Reza
Titel	A Geometric Comparison of the Transformation Loci with Specific and Mobile Capital
Quelle	In: Journal of Economic Education, 39 (2008) 2, S.145-152 (8 Seiten)Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0022-0485
Schlagwörter	Geometry; Microeconomics; International Trade; Models; Economics Education; Undergraduate Study + Suchen Sie Ihr Suchwort? Geometrie; Mikroökonomie; Trade; International relations; Handel; Internationale Beziehungen; Analogiemodell; Wirtschaftskunde; Grundstudium
Abstract	The authors show how the transformation loci in the specific factors model (capital specificity) and the Heckscher-Ohlin-Samuelson model (capital mobility) can be rigorously derived and easily compared by using geometric techniques on the basis of Savosnick geometry. The approach shows directly that the transformation locus with capital specificity has a greater degree of curvature than with capital mobility, given the same technology, and that the latter is an envelope of the former. It can also be used to show how incentives in the short run would lead to the long-run capital reallocation implied by the assumption of capital mobility. (Contains 3 figures.) (Author).
Anmerkungen	Heldref Publications. 1319 Eighteenth Street NW, Washington, DC 20036-1802. Tel: 800-365-9753; Tel: 202-296-6267; Fax: 202-293-6130; e-mail: subscribe@heldref.org; Web site: http://www.heldref.org
Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10