Econometrica: Jul 1966, Volume 34, Issue 3
Factor Market Distortions and the Shape of the Transformation Curve
Harry G. JohnsonIt is shown geometrically and algebraically that a distortion in the factor market may make the transformation curve concave outward, either throughout or over a range, depending on the type of distortion. Also, computations are presented showing that it takes much factor market distortion to change the transformation curve appreciably.
Log In To View Full Content