Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Jul, 1955, Volume 23, Issue 3

Equality of Factor Prices in World Trade<239:EOFPIW>2.0.CO;2-G
p. 239-257

Lionel W. McKenzie

The factor price equalization problem is approached by means of activity analysis. Conditions are determined in which the world prices of goods (alternatively, the world outputs of goods) will imply, by the profit conditions of competitive equilibrium, equal factor prices in all countries. The basic theorems are then applied to particular models of production.

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