Econometrica: Jul 1966, Volume 34, Issue 3

Factor Market Distortions and the Shape of the Transformation Curve

https://doi.org/0012-9682(196607)34:3<686:FMDATS>2.0.CO;2-8
p. 686-698

Harry G. Johnson

It 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

Back